Source
r/PersonalFinanceCanada•
GabTheWindow

Financial institution won't allow us to remove investment (QC)

Banking

Edit

Got the appropriate information thank you all

The information was in the agreement that she had signed back then, I'm just terrible at reading French!

Hi!

1 year ago my fiance invested in a product that guarantees to at least get your money back after 5 years.

Our issue with it now is that we are buying a house (didn't expect to do so until 3+ years but market and interest was so good we couldn't wait)

We wanted to have access to this money, even if we'd have to pay a penalty, to do some work on the house. But our financial institution (a well known Coop in Quebec, think green logo) won't allow us to get this money back before 3 years in the product.

Is this legal? Do we have any recourse?

Any advice would be much appreciated

Posted Nov 26, 2020, 4:05 PM UTC · edited

112
PM_ME_YOUR_TIFA•

what is the product? A GIC?

7
DemonousXodus•

Interested to know what this investment is before judging.

However I'm never surprised by the dealings of the well-known green logo coop in QC.

4
GabTheWindowOP•

It's called a

Placements garantie liés au marchés

Doesn't seem to have an English name

1
DemonousXodus•

It seems that its probably a GIC, and like others have mentioned, its very possible that they are right.

7
GabTheWindowOP•

I'll have a look at the agreement she would've signed,

Disappointed about how the guy "sold" her the product would've apparently not mentioned it. It's possible she didn't ask/remembered what he said

Thanks for the help :)

2
Mon30sousQuebec•

Placements garantie liés au marchés

English name is Market-linked guaranteed investments

It's actually indicated in the Fiche descriptive and in the Convention de placement that she had to read when she invested :

EST-IL POSSIBLE DE RACHETER MON PLACEMENT AVANT L’ÉCHÉANCE ?

Une fois par année, après la 3e année de détention, vous pouvez décider de convertir votre placement dans un autre placement garanti lié aux marchés. Vous pouvez aussi le racheter. À votre demande, la valeur approximative de conversion ou de rachat vous sera communiquée. Veuillez consulter la convention de placement pour en connaître les modalités.

You can find all the fact sheets and investment agreements in French here : https://www.desjardins.com/particuliers/epargne-placements/placements-garantis-lies-marches/index.jsp

4
GabTheWindowOP•

Much appreciated!

1
bluenose777•

If it is some kind of GIC or term deposit they you would be bond bound by the terms of the agreement. Find your agreement and see what it says.

Some agreements will let you cash out early for any reason, but you forfeit any interest. Others will only let you cash out early if you are in danger of losing your home. Or you die.

3
LeaveTheBank•

It says directly on their website:

Rachetable ou convertible une fois par année, après la 3e année, lors des périodes prévues et selon les modalités indiquées dans la convention de placement. La valeur de rachat ou de conversion peut être inférieure au capital investi. La valeur de conversion est supérieure à la valeur de rachat car le membre conserve un placement garanti lié aux marchés Desjardins.

You can check the contract you signed, if it says the same thing then yeah that's what you agreed on. Since you're only 1 year in, you would have 2 years left before you can take it out, assuming it would be with penalties.

3
GabTheWindowOP•

Yeah I found their page after I made the post,

We then found the agreement after the suggestions above.

Main reason I was asking was to make sure they could in fact do that, thanks

1
[deleted]•

[removed]

1
Laughatitall•

You should be able to “borrow” using that money as cash collateral.

Try go that route instead

1