Personal Finance

Td line of credit insurance?

  • Last Updated:
  • Oct 3rd, 2012 8:29 am
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Member
Jan 13, 2011
462 posts
8 upvotes

Td line of credit insurance?

is it possible to get rid of it I noticed td just threw it in there after raising my rate from 3.00% to 4.25% the loan is for 9000 on a student line of credit with my dad as the co-signer.Right now I'm required to pay the interest which is like $35 a month but I pay $100 but the insurance is like $30 I really dont need it for a 9k loan.
4 replies
Banned
Nov 27, 2006
2200 posts
445 upvotes
Toronto
Yes you can cancel it. Either over the phone or at the local branch where you signed up for it. Makes no sense that they just "threw it on". You obviously signed for it, just didn't know what you were signing for. With some banks you need to go in and sign an insurance cancellation form.
Member
Jan 13, 2011
462 posts
8 upvotes
I actually checked for the first 2 years I had it I wasn't paying any insurance for it Td added it after they rose my rates
Banned
User avatar
Feb 15, 2008
26318 posts
3242 upvotes
Calgary
You can cancel it. They have the right to change the interest rate to whatever they want. Just be careful -- having insurance might be a quid pro quo of obtaining such a low interest rate on an unsecured line of credit.
Newbie
Apr 21, 2006
57 posts
3 upvotes
@Mark77

Better not be quid pro quo - that's called "tied selling" and it's wholly illegal in Canada. It's also one of the reasons why banks can't offer "real" insurance out of their branches - there was too much of a perceived potential for conflict of interest (ie: buy this insurance policy and we'll give you a better mortgage rate).

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