Personal Finance

TD unsecured LOC raises rate 3% after 20 years!

  • Last Updated:
  • May 10th, 2018 10:57 am
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Member
User avatar
Dec 15, 2017
405 posts
67 upvotes
Toronto
ksgill wrote:
Feb 14th, 2018 3:12 pm
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.
Jesus Christ, really? We are not supposed to complain? Banks and governments love people like you.
Deal Expert
Aug 22, 2011
20287 posts
7291 upvotes
Ottawa
MusicBox wrote:
Feb 19th, 2018 5:37 pm
Jesus Christ, really? We are not supposed to complain? Banks and governments love people like you.
Complaining does what exactly?
You are free to take your business elsewhere.
Member
User avatar
Dec 15, 2017
405 posts
67 upvotes
Toronto
vkizzle wrote:
Feb 19th, 2018 6:06 pm
Complaining does what exactly?
You are free to take your business elsewhere.
Yeah, if I get insulted at a McDonalds by a cashier I shouldn't complain either, I should just go to another McDonalds down the road :facepalm:
Deal Expert
Aug 22, 2011
20287 posts
7291 upvotes
Ottawa
MusicBox wrote:
Feb 21st, 2018 4:58 pm
Yeah, if I get insulted at a McDonalds by a cashier I shouldn't complain either, I should just go to another McDonalds down the road :facepalm:
OK Drama Queen, let's not get carried away here.
OP's interest rate was simply increased...
Deal Addict
Jul 15, 2009
1229 posts
354 upvotes
MusicBox wrote:
Feb 19th, 2018 5:37 pm
Jesus Christ, really? We are not supposed to complain? Banks and governments love people like you.
OK, fine, why don't you lend money to the OP at P+2.75%?

If you're not willing to do it, you're just as evil as the bank that has decided not to do it.

What makes you think that you can order some people (the bank) to do something that you would refuse to do yourself?

And why should they take orders from you?
Newbie
Feb 13, 2017
92 posts
20 upvotes
toronto, ontario
TD Bank just increased by 0.45% its posted rate for five-year fixed mortgages to 5.59%.

Wonder how this will affect LOC rates...?
Newbie
Feb 18, 2018
17 posts
8 upvotes
After seeing this thread, I've been waiting for the shoe to drop and sure enough, effective mid-May my rate goes from P+2.3% to P+3.8%. Fortunately I'm not carrying a balance. I still have a mortgage with TD but have been slowly moving the rest of my business to other institutions (Tangerine Chequing and RRSP, Alterna Savings, Scotia uLOC, Rogers Bank MC). Not sure whether there is a link between this and TD's decision to up my rate, though. On the other hand, maybe I'm the kind of value-conscious, self-serve customer they would like to get rid of in favour of folks who are happy to pay their relatively high fees for an admittedly high level of customer service.
Last edited by NowInYOW on Apr 27th, 2018 4:26 pm, edited 1 time in total.
Member
Mar 16, 2011
334 posts
154 upvotes
That sucks.

Another reason I am clearing out the last of any debt whatsoever in the next few months and never borrowing money again.
Deal Addict
Sep 11, 2006
1323 posts
244 upvotes
I don't understand do people's LOC rates are normally Prime + Locked in premium? I have a LoC that I opened but never used so I'm not really sure how its suppose to work. What is suppose to be a good rate? I just checked mine and its Prime + 2.99 still.
Deal Addict
May 28, 2009
1589 posts
92 upvotes
Toronto
slotscanada wrote:
Feb 15th, 2018 7:55 am
It’s all about principles to me, and how you treat a customer of 28 years, worse than a new customer off the street.
yup thats what happens when there is no real competition.

The existing customers are taken for granted (they are not going to find much better conditions elsewhere) and efforts are focused on getting new customers meaning discounts to lure in new customers with expiration in 3-6 months. The costs of the discounts given are basically part of your sales costs.

So as a consumer your only choice to get some deals is to go through the hassle of changing providers of services regularly to take advantage of the new customers discounts. And all the companies engaging in these practices are betting on the fact that people are too lazy to bother keeping switching in the long term.

Notice that you see this situation mostly in industries where competition is low or controlled via regulations like banking, telecoms etc.

Thank your Marketing and Strategic Management consultancies industry for coming up with these schemes to fleece you, the general public and middle class.
Member
Mar 13, 2018
328 posts
196 upvotes
burnt69 wrote:
Feb 13th, 2018 10:18 am
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.



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.
Lol what....housing prices stagnating since 2013?

Are you in thunder Bay or something? We can't even get back to 2016 prices for singles to towns and condos are through the roof
Deal Expert
Aug 22, 2011
20287 posts
7291 upvotes
Ottawa
Shadow Rider wrote:
Apr 27th, 2018 5:23 pm
I don't understand do people's LOC rates are normally Prime + Locked in premium? I have a LoC that I opened but never used so I'm not really sure how its suppose to work. What is suppose to be a good rate? I just checked mine and its Prime + 2.99 still.
Generally, not on ULOCs.
Deal Fanatic
Aug 14, 2007
8713 posts
754 upvotes
Toronto
slotscanada wrote:
Feb 13th, 2018 7:39 am
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....
My interest with RBC on an unsecured LOC 2.5 years ago was 5.99%. Now it’s 6.99% or maybe even now 7.99%

For rate hikes in everything I blame the minimum wage going up and am sure it’ll only get worse in 2019.

(I know I can’t blame it all in the min wage hike but it did make quite a lot of stuff increase in price).
Sr. Member
Feb 26, 2017
601 posts
247 upvotes
I got a letter that TD will be raising my LOC rate from P +2% to prime + 3.5% in May. Debt looks a lot worse with a 7% interest rate.
Member
Nov 8, 2017
494 posts
199 upvotes
With some low interest CC being lower than a lot of ULOC, I wonder what the appeal of having a LOC will be. In this case, it's like TD is shooting itself in the foot. Maybe they think people will be like"well, it's still better than 20%interest" when in reality there's cards with 8.9 % interest and lower

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