Personal Finance

LOC rate up, no notice?

  • Last Updated:
  • Sep 14th, 2017 2:53 am
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Deal Addict
Nov 25, 2014
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Newton Brook, ON
UrbanPoet wrote:
Sep 12th, 2017 5:34 pm
Its normal in that its perfectly legal for them to change any and all the terms anytime they want. Its actually kinda scary sounding if you read all the fine print.

Its not normal from a customer service standpoint. It would be couteous if they let customers know. They usually do it through mail.
It's normal to change without notice? Says who?

RBC:
We will give you at least 30 days written notice of any increase of your standard interest rate(s) (other than increases because of an increase of our Prime Rate).
http://www.rbcroyalbank.com/credit-card ... eement.pdf

Scotiabank:
Interest for credit lines is composed of two factors. The first is our prime rate which is announced by us from time to time. In addition to our prime rate, we will also set an adjustment factor. We will change our prime rate from time to time and will post a notice of this in our branches. We may also change the adjustment factor at our discretion, but we will give you prior written notice of any increase in the adjustment factor, stating the effective date of the change. Note for accounts secured by real property: if you increase your credit limit, we may increase your adjustment factor, but we will give you prior written notice.
http://www.scotiabank.com/ca/common/pdf ... let_lc.pdf

BMO's doesn't seem to be posted online, but I would be surprised if it was different. Usually they do say the interest rate is subject to change without notice, but that's because of the prime rate. When has a bank claimed they can change the non-prime portion without notice?

However as someone said above, the notice doesn't have to be obvious. They can include it as one sentence at the bottom of your statement, which many people will miss.
You need someone with an umbrella not a fork
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Mar 16, 2011
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Yes, check your previous statements. I've seen it added in a way that it's really easy to miss unless you are looking for it.
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Apr 16, 2007
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Financial District B…
rocking23nf wrote:
Sep 12th, 2017 4:27 pm
hey i just checked my BMO loc, the rate went from 7.50% to 8.78% last month, i know prime went up .25% in that time frame, but this is a 1.28% increase
no notice from BMO, no late payment, no missed payments.
is this normal?
rocking23nf wrote:
Sep 12th, 2017 7:03 pm
well I emailed my bank rep, waiting for a reply
I never received any notice in the mail or email or online banking.
not happy about this, I'm a long term customer, the loc is only around 9 months old.
For many FI's this is completely normal.

Your rate changed probably due to the fact you pose a higher risk now than when you first applied for that LOC.
----------------------------Licensed Credit Bureau member, S1, FI Automotive, CCP forums most banned = x 13 and counting, guess who that is?... stomped to the curb once again
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Dec 3, 2004
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Just checked my LOC and Scotiabank raised it 0.5%. Crooks. Luckily it is unused.
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Aug 22, 2005
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If the prime rate goes up all rates go up...
[OP]
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May 29, 2006
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mikeymike1 wrote:
Sep 13th, 2017 2:07 pm
For many FI's this is completely normal.

Your rate changed probably due to the fact you pose a higher risk now than when you first applied for that LOC.
i wondor if i called them and told them i make 20k more then i did when i opened the LOC would it change anything, my ratios would be better i would think
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Jan 27, 2004
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nmclean wrote:
Sep 13th, 2017 9:30 am
It's normal to change without notice? Says who?

RBC:
We will give you at least 30 days written notice of any increase of your standard interest rate(s) (other than increases because of an increase of our Prime Rate).
http://www.rbcroyalbank.com/credit-card ... eement.pdf

Scotiabank:
Interest for credit lines is composed of two factors. The first is our prime rate which is announced by us from time to time. In addition to our prime rate, we will also set an adjustment factor. We will change our prime rate from time to time and will post a notice of this in our branches. We may also change the adjustment factor at our discretion, but we will give you prior written notice of any increase in the adjustment factor, stating the effective date of the change. Note for accounts secured by real property: if you increase your credit limit, we may increase your adjustment factor, but we will give you prior written notice.
http://www.scotiabank.com/ca/common/pdf ... let_lc.pdf

BMO's doesn't seem to be posted online, but I would be surprised if it was different. Usually they do say the interest rate is subject to change without notice, but that's because of the prime rate. When has a bank claimed they can change the non-prime portion without notice?

However as someone said above, the notice doesn't have to be obvious. They can include it as one sentence at the bottom of your statement, which many people will miss.
Oh i don't disagree.
I thought o.p. Was mainly shocked that the bank arbitrarily increased his rates.

If you sign up for online banking and opt for e-statements... they could actually just send a message in your online bankings "message center".

They even post notices on atm's that most people ignore!
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Mar 24, 2008
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adamtheman wrote:
Sep 13th, 2017 2:13 pm
Just checked my LOC and Scotiabank raised it 0.5%. Crooks. Luckily it is unused.
Wait, you are using someone else's money and calling them crooks? Talk about a disconnect from reality. Lucky, yes. :facepalm:

Anyone else hoping for two 0.25% increases before the end of the year?
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Oct 4, 2004
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My Scotia rate is all over the place. My Scotia LoC started at P + 2.2 and then 3 years later rose to P + 2.8. I don't really use it much and would usually pay off any borrowed amounts within a month. A few months after that when I did some internal credit movement (transfer credit limit) and upped my 10k credit limit to 25k, the rate dropped down to P + 0.5. It's an excellent unsecured rate but I don't have much confidence in it.. leaving it only for emergencies.

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