The Decibel What happens when your bank dumps you
Jul 18, 2025
Erica Alini, a personal economics reporter for The Globe, dives into the troubling trend of debanking in Canada, where banks sever ties with customers often without explanation. She discusses the implications of losing essential financial services, particularly for small businesses and individuals flagged as high-risk. The conversation touches on the lack of transparency in account closures and the legal framework behind them. Alini also highlights personal stories, including one about a Nigerian entrepreneur facing potential discrimination, illustrating the broader societal impact of this issue.
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Banks Give Vague Debanking Notices
- Banks send vague "debanking" letters without specific reasons, citing "unacceptable risk".
- Customers are left in the dark about what triggers these decisions, causing confusion.
Debanking Ends Entire Bank Relationship
- Debanking means losing all banking products including chequing, savings, mortgages, and credit lines.
- Mortgages are especially difficult to move within the short notice period often given.
Banks Have Legal Right to Debank
- Canadian banks can legally end relationships without explanation beyond vague risk concerns.
- Banks aren’t obligated to keep a continued relationship despite initial account opening requirements.