Funds not released

Community Support
1

I am escalating my complaint regarding $1,539.39 deposited into my Neo Everyday
Account via an Amazon Work e‑Transfer. These funds are legitimate payroll and fully authorized. Despite completing Neo Financial’s internal complaints process, the funds remain withheld without any written legal justification. This indefinite restriction is inconsistent with Canadian banking regulations,FCAC guidelines, and OBSI principles, causing Financial’s hardship. Timeline • Dec 11, 2025: Account frozen without notice. • Mid-Dec 2025: Account closure claimed due to alleged T&C violation. • Jan 2026: Requested $306.78 release; denied. • Feb 2026: Complaints Committee issued “final decision,” providing no timeline. • Feb 16, 2026: Funds restricted for 67+ days. Issues 1. No explanation or legal authority for withholding funds. 2. No court order, law enforcement directive, or regulatory basis cited. 3. No timeline provided. 4. Indefinite hold causes undue hardship. These funds are from legitimate personal sources, unrelated to fraud, crypto, gambling, chargebacks, or third-party transactions.

Requested Resolution 1. Immediate release of $1,539.39 without delay. 2. Written confirmation of any lawful authority for withholding, if applicable. 3. Clear timeline for resolution if no lawful basis exists. This correspondence is copied to OBSI for oversight. If funds are not released promptly, I will escalate to FCAC and pursue legal remedies in Small Claims Court. Given that these are earned wages, I expect written confirmation and full release within 5
business days. Thank you for your urgent attention.

Sincerely, Jesspreet Singh Grewal

2

It appears you may not fully understand the T&C you agreed to when opening the account. This community forum is not the place to post this personal information and request. It is not going to reach the correct Avenue’s in doing so.

3

Thank you for your response. I understand that this is a community forum and not the official channel for resolving account issues. My intention in posting was to seek guidance and understand whether others have experienced similar situations with Neo Financial accounts.

However, I am fully aware of the Terms and Conditions and the rights provided to consumers under Canadian banking regulations. My concern is not about misunderstanding the agreement, but about the prolonged withholding of my funds without a clear timeline or explanation.

For clarity, I have already escalated the matter directly through the appropriate channels, including the complaints process with Peoples Bank of Canada and a formal complaint with the Ombudsman for Banking Services and Investments.

I appreciate the reminder about the purpose of the forum, and I will continue pursuing resolution through the proper complaint avenues.

4

NEO FINANCIAL is not who is holding your funds. Neo is not a bank and has not ever claimed to be. To really resolve your complaint, I would recommend reading out to PEOPLE’S TRUST and escalate your issue with them. Neo is a fintech and your funds are covered by CDIC by people’s trust , not NEO.

5

Thank you for clarifying. I am fully aware that Neo Financial is a fintech and that my funds are ultimately held by Peoples Bank of Canada under CDIC coverage. My communications with Neo were intended to clarify the status of my account and the release of my funds, as Neo manages the account interface and onboarding.

I have already escalated this matter to Peoples Bank / Peoples Trust through their formal complaints process, and I am prepared to involve the Ombudsman for Banking Services and Investments (OBSI) and Financial Consumer Agency of Canada (FCAC) if the issue is not resolved promptly.

While I appreciate your reminder, it is important to understand that Neo, as the account provider, plays a role in facilitating access to funds, and I expect cooperation from all parties to ensure my balance of $1,539.57 is released without further delay.

Sincerely,

Jesspreet Singh Grewal

6

Thank you for clarifying. I am fully aware that Neo Financial is a fintech and that my funds are ultimately held by Peoples Bank of Canada under CDIC coverage. My communications with Neo were intended to clarify the status of my account and the release of my funds, as Neo manages the account interface and onboarding.

I have already escalated this matter to Peoples Bank / Peoples Trust through their formal complaints process, and I am prepared to involve the Ombudsman for Banking Services and Investments (OBSI) and Financial Consumer Agency of Canada (FCAC) if the issue is not resolved promptly.

While I appreciate your reminder, it is important to understand that Neo, as the account provider, plays a role in facilitating access to funds, and I expect cooperation from all parties to ensure my balance of $1,539.57 is released without further delay.

Sincerely,

Jesspreet Singh Grewal

8

Hi Jesspreet, I’m truly sorry for the stress this situation has caused. It’s unusual to hear about such a delay, as funds are typically only limited when standard account safeguards are triggered. To help me look into this, please feel free to share your ticket number here. To protect your privacy, please avoid posting any other personal or account details. Once I have that number, I can escalate this to the right team to help get you the clarity you need and get this moving for you.

9

Hi @Avinash_Solomon, thanks for sharing that context and for your patience while this is being looked into. I understand how frustrating it can be when timelines and updates haven’t been completely clear.

Our team is currently taking a closer look at the transaction to understand exactly what happened. Once we have more clarity, we’ll follow up with you and share the next steps.

We appreciate your patience while we investigate this further.

10

Dear Complaints Officer,

I am escalating my complaint regarding $1,539.39 deposited into my Neo Everyday Account via an Amazon Work e‐Transfer. These funds are legitimate payroll and fully authorized. Despite completing Neo Financial’s internal complaints process, the funds remain withheld without any written legal justification. This indefinite restriction is inconsistent with Canadian banking regulations, FCAC guidelines, and OBSI principles, causing financial hardship.

Timeline • Dec 11, 2025: Account frozen without notice. • Mid-Dec 2025: Account closure claimed due to alleged T&C violation. • Jan 2026: Requested $306.78 release; denied. • Feb 2026: Complaints Committee issued “final decision,” providing no timeline. • Feb 16, 2026: Funds restricted for 67+ days. Issues 1. No explanation or legal authority for withholding funds. 2. No court order, law enforcement directive, or regulatory basis cited. 3. No timeline provided. 4. Indefinite hold causes undue hardship. These funds are from legitimate personal sources, unrelated to fraud, crypto, gambling, chargebacks, or third-party transactions.

Requested Resolution 1. Immediate release of $1,539.39 without delay. 2. Written confirmation of any lawful authority for withholding, if applicable. 3. Clear timeline for resolution if no lawful basis exists. This correspondence is copied to OBSI for oversight. If funds are not released promptly, I will escalate to FCAC and pursue legal remedies in Small Claims Court. Given that these are earned wages, I expect written confirmation and full release within 5 business days.

Thank you for your urgent attention.

Sincerely, Jesspreet Singh Grewal

(Attachment Complaint Submitted Against Neo Financial | Better Business Bureau.pdf is missing)

(Attachment Formal Escalation – Withheld Deposit Funds (Neo Financial Account).pdf is missing)

(Attachment [Neo Financial] Re- We’re Looking Into Your Concern.pdf is missing)

(Attachment Interac e-Transfer- You’ve received $989.00 from virender singh and it has been .pdf is missing)

(Attachment Interac e-Transfer- You’ve received $180.00 from LOGILINK SOLUTIONS INC. and it .pdf is missing)

(Attachment Interac e-Transfer- You’ve received $45.00 from Akshay Dadhwal and it has been a.pdf is missing)

(Attachment Interac e-Transfer- You’ve received $324.00 from MAULIK THAKAR and it has been a.pdf is missing)

(Attachment Gmail - [Neo Financial] Re_ Your Recent Conversation with Neo Financial (1).pdf is missing)

(Attachment Gmail - Re_ [Neo Financial] Re_ Your Recent Conversation with Neo Financial.pdf is missing)

(attachments)

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IMG_3066.PNG750×1334 122 KB

IMG_2877.PNG
IMG_2877.PNG750×1334 106 KB

11

Hey mate, I’m really sorry to hear that happened to you. Situations like this are extremely frustrating, especially when you’re getting different answers from support and no clear explanation.

I’m actually going through a very similar issue myself with Neo Financial My account was closed on January 20, 2026 during an internal review and they’ve been holding $1,539.57 of my funds since then with no clear timeline for release. The funds are held through their partner bank Peoples Trust Company which is the institution that actually holds the deposits.

From what I’ve learned so far:

  • Neo is a fintech, not a bank.
  • Deposits are held by Peoples Trust and covered by Canada Deposit Insurance Corporation (CDIC).
  • If funds are withheld or an account is closed, complaints usually have to be escalated through the bank’s complaint process.

I’ve already escalated my case and also filed a complaint with the [Ombudsman for Banking Services and Investments because it’s been weeks without a proper resolution.

If you haven’t already, you may want to:

  1. File a formal complaint directly with Peoples Trust.
  2. Escalate it to OBSI if they don’t resolve it within their complaint process.
  3. Keep records of all emails, chat logs, and transaction confirmations from PokerStars showing the transfer was completed.

You’re definitely not alone in dealing with this. Hopefully both of our situations get resolved soon and the funds are released.

12

I’ve been following this thread and honestly, having worked in the digital banking space for a few years, I feel like some perspective might be helpful here.

I know it’s easy to throw around terms like ‘FCAC’ and ‘OBSI,’ but let’s be real for a second: Banks are in the business of keeping customers, not losing them. Neo spends a fortune to get people to sign up. They don’t just ‘decide’ to close accounts or hold funds for fun, it’s actually a massive administrative headache for them to do so.

When a ‘Final Decision’ is issued and an account is closed, it’s usually because the account became a major liability. In my experience, ‘no reason’ usually actually means one of these things:

  • Third-Party Transfers: I noticed some of those attachments mention transfers from various individuals/companies. If those senders later flag those transfers as unauthorized or if they look like ‘business’ activity on a personal account, the bank is legally required to freeze things.

  • Terms & Conditions Violations: If the bank suspects the funds aren’t actually ‘earned wages’ but are tied to high-risk activity (even if you didn’t know it), they have to follow strict federal anti-money laundering laws. They literally cannot give you a detailed play-by-play during an investigation without breaking ‘tipping off’ laws.

  • Conduct: This is the one people always leave out of their posts. If someone is aggressive or harasses the support staff, most institutions will exercise their right to end the relationship immediately to protect their team.

At the end of the day, OBSI and the regulators are there for a reason, but they also know how these protocols work. If Neo is standing by a ‘final decision,’ it means they’ve got their paperwork in order. Usually, these stories have two sides, and the ‘victim’ side is the only one that gets posted on forums. Just my two cents from someone who’s seen the back-end of these situations many times!

14

I appreciate your perspective from working in the digital banking space. That said, there are a few points that need clarification from a customer rights standpoint:

  1. Account closures and fund holds are not cost-neutral for customers. While banks may see administrative headaches as a concern, withholding someone’s money—even temporarily—has real financial consequences for the customer. A “final decision” does not automatically mean it’s justified.

  2. Regulatory oversight exists for a reason. FCAC and OBSI exist precisely to ensure that banks and fintechs follow fair procedures, including providing timely responses and clear reasoning to affected clients. Alleged “no reason” closures are not automatically acceptable, and customers have a right to challenge them.

  3. Legal obligations vs. customer communication. Anti-money laundering laws are real, but they do not absolve a bank from providing a general explanation of the reason for freezing or holding funds. Customers can and should escalate through OBSI or the courts if a bank refuses to clarify.

  4. Conduct is a two-way street. While harassment is never acceptable, many legitimate complaints are treated as aggressive when customers are simply insisting on access to their own funds or clarity regarding account actions.

Bottom line: banks have obligations, but so do they toward their clients. Being on the “back-end” doesn’t automatically mean a closure is justified; each case should be assessed on its merits. Transparency and timely resolution matter, especially when people’s money is involved.