Personal Finance

TD unsecured LOC raises rate 3% after 20 years!

  • Last Updated:
  • May 10th, 2018 10:57 am
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[OP]
Deal Addict
User avatar
Sep 10, 2003
1551 posts
124 upvotes
Hamilton

TD unsecured LOC raises rate 3% after 20 years!

Couldn’t believe yesterday when I got a non Chalant letter in the mail advising that in one month they are raising my unsecured line of credit by 3% fixed rate portion and provided no explanation. I was fortunate enough to have prime plus 2.75% for the past 20 years! Now in March that will be prime plus 5.75%! Called in and waited 30 mins on hold, talked to the first guy and he advised no much he can do apparently 500,000 TD customers are getting these letters! [the reason for creating this thread). After then talking to a useless manager she told me the only thing I could do is shop around and if I find a better rate they’d consider it. So I BSd her and said yeah BmO is offering 4.99%, so another guy filled out th form and I’ll find out later in the week.

This is crazy after 20 years how they just wambo go and change things. My credits the best it ever has been, not that there was ever a problem anyways. bS lines like their cost of borrowing has increased, etc.

Anyways, heads up to other TD customers, letters are coming out....
Thread Summary
TD Bank suddenly raises Personal Line of Credit by 3 percent
78 replies
Newbie
Jun 20, 2008
72 posts
4 upvotes
when was the letter dated? i didn't received anything yet as of this morning... stupid TD
Deal Fanatic
User avatar
Oct 1, 2011
6110 posts
1325 upvotes
Maybe something is going on in their unsecured credit accounts...I guess they want to be paid extra for whatever risk they believe they're seeing.

I was pre-approved in the fall for like 8.xx% and then they raised it to 11.xx% in January. I didn't take it, don't need it. Basically just saying your rate is still sweet. (I have excellent credit scores but likely a shorter history than you do.)
Jr. Member
Mar 1, 2016
118 posts
42 upvotes
I went through something similar with Scotiabank a couple of years ago. Called in immediately and complained, but didn't get anywhere. From then on, I took every telephone call from them for increases to my Visa limit, mortgage offers, etc. and simply said I wasn't considering doing any new business from them until they returned my LOC rate to what it was before. I really didn't think it would get me anywhere, but I randomly got a call one day from my new Scotiabank "financial advisor" who was clearly hungry for business. Used the same line and he said let me see what I can do. Rate was changed back the following billing period. YMMV.
Deal Expert
User avatar
Jul 30, 2007
20803 posts
5635 upvotes
Toronto
yikes.

Mine has been Prime + 2% for like 10 yrs now. All my banking is done with TD.
Deal Addict
Aug 2, 2003
2331 posts
227 upvotes
Toronto
BigDurian wrote:
Feb 13th, 2018 8:23 am
I went through something similar with Scotiabank a couple of years ago. Called in immediately and complained, but didn't get anywhere. From then on, I took every telephone call from them for increases to my Visa limit, mortgage offers, etc. and simply said I wasn't considering doing any new business from them until they returned my LOC rate to what it was before. I really didn't think it would get me anywhere, but I randomly got a call one day from my new Scotiabank "financial advisor" who was clearly hungry for business. Used the same line and he said let me see what I can do. Rate was changed back the following billing period. YMMV.
Hmm, same thing happened to me. I even spoke to a FA in branch
Deal Addict
Oct 6, 2015
1300 posts
685 upvotes
House prices are going down finally after stagnating for so many years (since 2013). Canadians are at record debt levels. The cost of bank capital is rising. The bank is being opportunistic and is raising rates in anticipation of a least a portion of their customer base being 'stuck' and being unable to pay off their loans.

However, sometimes rates rise on unsecured lines simply because your data is out of date at the bank. I'd suggest giving them a call, and making sure your personal information is all up to date.
Yeah me too, I threatened to move Waterhouse, TFSAs and RRsps and bank accounts. They don’t care.
Perhaps you can/should discuss with TD using some of these investments as security for the loans. A secured loan has a much lower interest rate than an unsecured loan.
[OP]
Deal Addict
User avatar
Sep 10, 2003
1551 posts
124 upvotes
Hamilton
Burnt69 yeah I called last night, 30 mins on hold, 10 mins with a credit rep, 30 mins with a manager and 10 more mins with a credit analyst putting in the adjustment consideration citing all those things you mentioned.
Jr. Member
Jan 10, 2018
128 posts
54 upvotes
Welcome to the Credit Trap!
Sucker enough people in and convince them to max out to their eyeballs and then jack up the rates dramatically.
[OP]
Deal Addict
User avatar
Sep 10, 2003
1551 posts
124 upvotes
Hamilton
Tommycoupons wrote:
Feb 13th, 2018 12:37 pm
Welcome to the Credit Trap!
Sucker enough people in and convince them to max out to their eyeballs and then jack up the rates dramatically.
No sucker in me, I’ve go5 a 38k limit and last m9nth was 0 balance, this month 5k for some Reno’s. It’s the principle beh8nd the increase after 20 years. It won’t realistically affect me more than 20$ a month if I don5 pay it off
Member
Oct 27, 2012
269 posts
63 upvotes
GTA
I recently applied for a LOC with TD, and given P+7.49, no wonder!

Went with CIBC, which gave me P+1 and 6 times the limit TD offered - a special rate for certain professions.
Newbie
Sep 20, 2015
62 posts
30 upvotes
Ottawa, ON
folks - i have said it before and will say it again - even if your bank agree to match the rate you got from another bank but please please don't stick with your current bank. I know people will jump on me for saying this. What ever is the reason you come up with to stick with your current bank after receiving this gift (rate increase) - it is not worth to stick with them. I believe the inability of people not shutting their bank is one of the reasons bank do these kind of thing,
no offence - just my 2 cents.
Deal Fanatic
Mar 24, 2008
5502 posts
1540 upvotes
Toronto
So let me get this straight, you are borrowing someone else's money and you are upset that they are asking you to pay a higher rate? I find the sense of entitlement amusing.
Illegitimi non carborundum

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