Northern Stores clarify their cheque cashing support for Residential School Survivors
Letter of the day - Dec 7 2007
No charge for cheque cashing
In a Dec. 4 Winnipeg Free Press article on the Indian Residential School Settlement Act (IRSSA) cheque payments, it was incorrectly reported that Northern stores, a division of The North West Company, is charging a cheque cashing fee on IRSSA payouts. A Dec. 5 article on IRSSA then inferred that The North West Company was pressured into changing our cheque cashing policies in regards to IRSSA.
In reality, North West prepared for the IRSSA payouts by carefully considering the needs of our customers and communities. We engaged in a consultative process with IRSSA officials, First Nation and Inuit leaders and residential school survivor groups.
One of the important decisions stemming from our internal meetings and the consultative process was that our stores would not cash IRSSA cheques in their entirety, for any fee. The reason for this decision was the protection of our customers' privacy and security rights, as well as the risk and cost attached to transporting tens of millions of dollars in cash to remote communities.
The alternative we are offering to IRSSA recipients is a combination of cash and the loading of a cash card. With this service, the total fees on any IRSSA cheque, which are currently averaging $17,000, are approximately $6. There is no fee on the cash back portion being offered, which is up to $2,500. The only fees apply to loading the balance to electronic cash cards and then transferring that balance, at the customer's convenience, to another account.
A second important decision was that The North West Company would not market or advertise our cheque-handling policies, with regards to the IRSSA payout. This course of action was selected in deference to the historical significance and gravity that the IRSSA represents. We did not want our independent decisions and actions misconstrued as a marketing ploy. Our intent was and is clear and unequivocal; we would not and have not charged cheque-cashing fees for IRSSA payouts, because it was not the right thing to do. Despite claims to the contrary, outside pressure had nothing to do with either decision.
Unfortunately, the Winnipeg Free Press articles have missed what has been a very positive story, namely that the vast majority of our IRSSA customers have been very pleased with our financial services.
MICHAEL MCMULLEN
Executive Vice-President
Northern Canada Retail Division
The North West Company