Unexpected bank charges are startling, to say the least.
If you’ve just woken up to an unexpected withdrawal from your account attached to an IBB Client Account MGMT or another IBB charge, then the first thought in your head may be fraud or identity theft.
However, this charge is a legitimate withdrawal or transfer that’s initiated by your bank. It’s usually the result of unpaid debts or a default related to your bank account. With a growing number of student loan defaults, this charge has become increasingly common for Canadians.
Below, I’ll explain a bit more about this charge, what to do if you notice it, and how to avoid it in the future.
If you’re like most responsible Canadians, you probably check your banking and credit card financial statements several times a month. This is a good practice to get into, as it will help you keep better track of your finances, can help you stay on top of your budget, and can help you identify potentially fraudulent charges.
Nobody likes waking up to sudden, unexpected debits from their account, though. Just take a look at this Reddit user’s rant when he woke up to a $5,000 IBB withdrawal from his account.
IBB is a common financial code used by CIBC to identify Inter-Branch Banking (IBB) charges.
IBB charges typically indicate that money was transferred from one account to another account at the same financial institution.
For example, if you have a loan account with CIBC and a chequing account, your loan payment may be automatically withdrawn by CIBC, resulting in an inter-branch banking transfer.
If you bank with CIBC, then you can see several different IBB charge codes, depending on your circumstance. The IBB Client Account MGMT code indicates that an inter-branch banking transfer was initiated in response to the management of your account.
This could be the result of a number of things, such as:
- Automated payments on a personal loan or mortgage with CIBC
- Unpaid or past-due credit card balances with CIBC
- Default student loans
If you look through online forums and threads from CIBC customers who’ve experienced these withdrawals, they all have one thing in common – the charge was unexpected.
This can be incredibly frustrating, especially for the 47% of Canadians who are living cheque to cheque and having trouble keeping up with bills and necessities.
The money taken by CIBC might be your grocery money, your child’s birthday money, or even your rent money that you had saved.
The first thing you should do after receiving an IBB debit from your account is to contact a customer service representative at CIBC. Unfortunately, these account withdrawals don’t really have a specific description (which is probably why you’re here reading this post!).
A banker should be able to explain the exact reason for the debit and will be able to identify whether it’s a legitimate charge or if it was mistaken. In the event that the charge was a mistake, CIBC should be able to return your funds within one or two business days.
If you spend some time reading through the r/PersonalFinanceCanada subreddit, you’ll see plenty of posts from people who’ve experienced unexpected bank withdrawals or who are trying to identify potentially fraudulent charges on their cards.
Here are some of the main causes behind unexpected IBB Client Account MGMT charges.
If you have an account with CIBC and also have an active loan account with the bank, then the debit could be the result of an automated payment on your loan account. This often occurs if you enroll in paperless billing and set up auto-payment.
However, it could just as easily be the result of default loans.
If you’ve recently missed a loan payment (or have already missed several), then CIBC reserves the right to take the money they’re owed directly out of your bank account.
Just as CIBC can forcibly withdraw payment on default loans, the bank can also withdraw payment for late credit card payments on cards that you may have with CIBC.
CIBC is a popular bank for Canadian students, as they not only offer good rates on student loans but also offer excellent introductory rates for new student bank accounts. As a result, many young Canadians use CIBC as their primary bank and apply for student loans through the bank.
Just like unpaid credit cards and standard loans, CIBC can withdraw money from your bank account with them if you fail to make your agreed upon student loan payments.
In some cases, the debit from your account may not be due to a default on your part. If you’ve cosigned a loan or have a joint account with somebody who has a credit card through CIBC, then your finances are, unfortunately, tied in with the other borrower or your joint account partner.
To wrap up, here are some helpful tips to help you avoid unexpected IBB withdrawals from CIBC.
Whenever you sign up for loans, credit cards, and other financial products from CIBC (or any bank, for that matter) you’re required to provide your signature on stacks of documents that are full of fine print.
Very few, if any, customers actually read through this, which is why they’re surprised when they receive an automated IBB withdrawal.
The reality is, whenever you don’t pay your bills on time, financial institutions are allowed to pursue the money on their own terms.
So, if you want to avoid uncomfortable situations like this, your best bet is to keep track of your bills and make sure that they’re all paid on time.
Student loans usually have very specific repayment terms. Some loans are long-term and don’t require you to start making payments until after you graduate, while others are short-term loans that require the student to start making payments earlier.
Whatever the case may be, make sure that you understand your student loan terms before signing off on them. If you’re unable to keep up with your payments, then check out my post on student loan forgiveness and aid programs!
Take this one with a grain of salt…
If you’re responsible and can stay on top of your credit card payments, then you shouldn’t have any issues opening a credit card with your primary banking institution.
However, if you’re not the best at making payments on time, then you may not want to open a credit card at the same institution where you have your chequing account with.
The bank has all of your account information for your credit and debit card accounts and won’t hesitate to take the money you owe them out of one of your bank accounts.
Interacting with a Representative for IBB Account Management
Before even initiating the dialogue, it’s beneficial to gather all pertinent documents—financial statements, any notices received, or other relevant communications. Armed with these, you can provide context, helping the representative understand your situation better.
The representative can provide clarity on the nature of the charge, unravel any complications, and, most importantly, help chart out a roadmap for remediation.
The IBB Client Account MGMT charge code on your statement is the result of an inter-branch banking transfer initiated by CIBC. It usually indicates an automated withdrawal for the payment of a bill or debt you have with the bank.
Unfortunately, the only way to dispute the charge is to contact the bank directly and speak with a representative. In some cases, you may be able to work out a payment plan and get the amount refunded into your account.
Having trouble staying on top of your bills and budget? Keep on reading to see my list of the best budgeting apps in Canada next! If you use these programs wisely, you’ll never miss another payment!