Personal Finance

BMO CashBack Mastercard Low Interest Rate Option Cancelled

  • Last Updated:
  • Apr 2nd, 2015 2:31 pm
[OP]
Newbie
Feb 9, 2009
18 posts
2 upvotes
Ontario

BMO CashBack Mastercard Low Interest Rate Option Cancelled

Received a letter in the mail today from BMO telling me that the Mastercard I've had for years has a range of features and benefits, including a Low Interest Rate Option.

The letter reads:
"Unfortunately, the Low Interest Rate Option is no longer available and your current interest rate of 11.9% will change to the standard rate of 19.9% effective the first day following your April 2015 statement date." The full annual fee will be refunded on your April 2015 statement. "We realize that the Low Interest Rate Option may be important to you and understand that you may have questions about this change." You can call one of BMO representatives. If you would like more details on other credit card products that might be more appropriate you can visit BMO website or go to your local branch.

I've been a loyal BMO Mastercard customer for 20+ years. I have never missed any payments. During those years, unfortunate for me, I have received and/or accepted the credit limit increase offers. At the moment, I am carrying a high credit balance so this substantial increase in interest rate adds up to a lot of money in interest to be paid.

Is this normally something BMO Mastercard does to it's credit card customers?
8 replies
Sr. Member
Apr 28, 2014
675 posts
184 upvotes
Oakville, ON
matha wrote: Today I received a letter in the mail from BMO telling me that the Mastercard I've had for years has a range of features and benefits, including a Low Interest Rate Option which I currently have. The letter goes on to say that unfortunately, the Low Interest Rate Option is no longer available and that my current interest rate of 11.9% will change to the standard rate of 19.9% effective the first day following my April 2015 statement date. Oh yes! [Bonus] also says that my full annual fee that I paid will be refunded on my April 2015 statement.

The letter also goes on to say: "We realize that the Low Interest Rate Option may be important to you and understand that you may have questions about this change." Further I am told that I can call one of BMO representatives. If I would like more details on other credit card products that might be more appropriate I can visit BMO website or go to my local branch.

I've had my BMO Mastercard for 20+ years. During those years, unfortunate for me, I have received and/or accepted the credit limit increase offers. At the moment, I am carrying a high credit balance so this huge increase in interest rate is going to effect me and can't deny it won't. I have never missed any payments.

Is this normally something BMO Mastercard does to it's credit card customers? I'm sorry, after I read this letter, I'm just sitting here in shock. It feels personal, almost like some kind of punishment but for what.
I'm not sure whether this applies just to you, or whether this applies to all MasterCard customers who took the Low-Interest Rate option.

Regardless, loyalty means nothing to the big banks; and if you call in to complain, all they will do is try and sell you a Line of Credit instead.

How high is your balance? Can you put in a Line of Credit or Loan application at another bank and move the balance on over? That's what I would suggest.

Don't give BMO the privlege of your lending business anymore, though; that letter just disqualified them from having it.

Keep the MasterCard after you move the balance elsewhere; BMO just will no longer make interest revenue off you. Just use the BMO MasterCard for everyday purchases and pay the bill in full every month.
Sr. Member
Apr 28, 2014
675 posts
184 upvotes
Oakville, ON
Here's an even better idea! Put in an application for Capital One Smartline MasterCard right now:

http://www.capitalone.ca/credit-cards/s ... %2Fcompare

0% interest on balance transfers until January 2016 - and then 9.9% after that. You might as well - complaining to BMO isn't going to get you anywhere.
Newbie
Mar 28, 2015
1 posts
Ottawa, ON
matha wrote: Received a letter in the mail today from BMO telling me that the Mastercard I've had for years has a range of features and benefits, including a Low Interest Rate Option.

The letter reads:
"Unfortunately, the Low Interest Rate Option is no longer available and your current interest rate of 11.9% will change to the standard rate of 19.9% effective the first day following your April 2015 statement date." The full annual fee will be refunded on your April 2015 statement. "We realize that the Low Interest Rate Option may be important to you and understand that you may have questions about this change." You can call one of BMO representatives. If you would like more details on other credit card products that might be more appropriate you can visit BMO website or go to your local branch.

I've been a loyal BMO Mastercard customer for 20+ years. I have never missed any payments. During those years, unfortunate for me, I have received and/or accepted the credit limit increase offers. At the moment, I am carrying a high credit balance so this substantial increase in interest rate adds up to a lot of money in interest to be paid.

Is this normally something BMO Mastercard does to it's credit card customers?

One option is to call them, let them know that you got a letter in the mail saying that your interest rate is going to be increased to 19.9%, and ask them nicely if it would be possible to not be switched over to the 19.9% interest rate.

It seems as though they have a Preferred Rate card, with a $20/year fee. The interest rate on it should be lower than the 19.9% it's going up to.

They were nice when I called. Give it a try.
Member
Mar 19, 2015
293 posts
58 upvotes
Cerium398 wrote: Here's an even better idea! Put in an application for Capital One Smartline MasterCard right now:

http://www.capitalone.ca/credit-cards/s ... %2Fcompare

0% interest on balance transfers until January 2016 - and then 9.9% after that. You might as well - complaining to BMO isn't going to get you anywhere.
Interestingly, the Smart Line is now gone from Capital One's credit card lineup. What's next to disappear?
Deal Addict
Feb 10, 2013
4546 posts
1096 upvotes
Richmond
the mbna smart line will poof next.

blame the merchants lobbying the government to get mastercard and visa to lower interchange. blame harper lol
Deal Addict
User avatar
Feb 23, 2004
3467 posts
286 upvotes
Calgary
Can bmo switch you to the non cashback low interest rate card?
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Deal Addict
User avatar
Feb 23, 2004
3467 posts
286 upvotes
Calgary
what was the credit limit?
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