Personal Finance

Help - Can RBC Bank (US) come after me for $25K US debts?!

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  • Oct 20th, 2020 6:53 pm
[OP]
Newbie
Oct 15, 2020
10 posts
1 upvote

Help - Can RBC Bank (US) come after me for $25K US debts?!

I live in the GTA and lost my restaurant business due to COVID-19. I am close to being wiped out -- selling my condo and car.

I and have tons of debt - mainly in a LOC at RBC Canada (42k CAD out of a 50k limit) and at RBC Bank USA (25K USD). I stopped paying the US debt as I am hoping that won't ruin my credit history. I can't afford to repay it.

I am still paying the RBC Cdn LOC but the have put a limit now on my LOC and two credit cards (I guess to make sure I don't get into further debt). RBC US keeps calling me from 8:00am until 8:00pm.

I was given the US-based credit card as I had good credit two years ago and unfortunately it has been maxed out now. I have no social security number or any credit history at all in the US. This is the page that discusses the program: https://www.rbcbank.com/cross-border/us ... creditcard

I want to know what will be the impact to me in practical terms? Can RBC Canada come after for debts held by RBC US? Can they take me to court in Canada? Can they transfer the debt to my Canadian credit cards or somehow have it show up in Canada? Can they tarnish my Cdn credit history? I am so stressed.
22 replies
Deal Fanatic
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Jan 31, 2006
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Best answer is ask RBC Canada, if RBC USA share information with them.
[OP]
Newbie
Oct 15, 2020
10 posts
1 upvote
I am sure they share as my Canadian LOC and visa cards are now basically closed/reduced credit limits to $0.

My question is: I want to know what will be the impact to me in practical terms? Can RBC Canada come after for debts held by RBC US? Can they take me to court in Canada? Can they transfer the debt to my Canadian credit cards or somehow have it show up in Canada? Can they tarnish my Cdn credit history? I am so stressed.
Deal Addict
Jan 2, 2015
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Toronto, ON
If you go to canlii.org you can see a bunch of court cases. Canadian courts have enforced American court orders concerning debts, but only for large debts.

I don't know what is considered "large", however. It doesn't seem to happen very often.
[OP]
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Oct 15, 2020
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Can you share any cases or links? I would be grateful!
Member
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Nov 23, 2014
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Toronto, ON
JamieSneider wrote: Can you share any cases or links? I would be grateful!
If your RBC LOC Application and approval is based on credit profile or info with RBC Canada,then RBC USA will come after you.
Even if you don't have SSN ,chances are your credit profile is already created in US,based on your name and date of birth and may impact future credit in USA

I don't think it will have any effect on Canadian credit,unless if RBC Canada has any arrangements to do so(to report default to Canadian bureaus )

Read the RBC USA line of credit/credit card application terms and fine print
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Mar 30, 2004
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If the RBC Canada client agreement has a very broadly worded right of offset, suspect they may be able to apply any assets held at RBC Canada against a debt owing to RBC USA which legally is a subsidiary of Royal Bank of Canada.

But if you have no assets at RBC Canada, not sure there's anything they can do to enforce a RBC US debt.
Sr. Member
Dec 22, 2007
544 posts
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Mississauga
JamieSneider wrote: I live in the GTA and lost my restaurant business due to COVID-19. I am close to being wiped out -- selling my condo and car.

I and have tons of debt - mainly in a LOC at RBC Canada (42k CAD out of a 50k limit) and at RBC Bank USA (25K USD). I stopped paying the US debt as I am hoping that won't ruin my credit history. I can't afford to repay it.

I am still paying the RBC Cdn LOC but the have put a limit now on my LOC and two credit cards (I guess to make sure I don't get into further debt). RBC US keeps calling me from 8:00am until 8:00pm.

I was given the US-based credit card as I had good credit two years ago and unfortunately it has been maxed out now. I have no social security number or any credit history at all in the US. This is the page that discusses the program: https://www.rbcbank.com/cross-border/us ... creditcard

I want to know what will be the impact to me in practical terms? Can RBC Canada come after for debts held by RBC US? Can they take me to court in Canada? Can they transfer the debt to my Canadian credit cards or somehow have it show up in Canada? Can they tarnish my Cdn credit history? I am so stressed.
no idea but you may wish to consider moving any funds you have in your RBC accounts. You can always worry about paying back instead of trying to get money back.
Newbie
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Oct 8, 2020
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North Toronto
A somewhat related question for everybody in this thread, can a person be denied entry into the U.S. if that someone owes say $50,000 U.S. to a bank or a business and has been reported to a credit bureau? Does this affect U.S. visas in the future?

I ask because I know someone who was denied Canadian permanent residence because he owed $14,000 in an at-fault traffic accident and was eventually deported because of it.
[OP]
Newbie
Oct 15, 2020
10 posts
1 upvote
DeletedMemories wrote: no idea but you may wish to consider moving any funds you have in your RBC accounts. You can always worry about paying back instead of trying to get money back.
I already switched banks as I had that same concern!
[OP]
Newbie
Oct 15, 2020
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RubiconX wrote: A somewhat related question for everybody in this thread, can a person be denied entry into the U.S. if that someone owes say $50,000 U.S. to a bank or a business and has been reported to a credit bureau? Does this affect U.S. visas in the future?

I ask because I know someone who was denied Canadian permanent residence because he owed $14,000 in an at-fault traffic accident and was eventually deported because of it.
That would be horrible - I want to know this too!
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Jan 1, 2017
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RubiconX wrote: A somewhat related question for everybody in this thread, can a person be denied entry into the U.S. if that someone owes say $50,000 U.S. to a bank or a business and has been reported to a credit bureau? Does this affect U.S. visas in the future?

I ask because I know someone who was denied Canadian permanent residence because he owed $14,000 in an at-fault traffic accident and was eventually deported because of it.
What’s was the immigration status of that person? I don’t think they were deported due to debt but because they didn’t legal immigration status in Canada.
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Jan 27, 2004
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RubiconX wrote: A somewhat related question for everybody in this thread, can a person be denied entry into the U.S. if that someone owes say $50,000 U.S. to a bank or a business and has been reported to a credit bureau? Does this affect U.S. visas in the future?

I ask because I know someone who was denied Canadian permanent residence because he owed $14,000 in an at-fault traffic accident and was eventually deported because of it.
depends how that money is owed... if its for a traffic accident, it sounds like some sort of legal judgement related to driving without insurance. which is a criminal matter. Because if he had insurance... he wouldn't owe $14k for a traffic accident. Insurance would have covered it.
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Oct 8, 2020
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UrbanPoet wrote: depends how that money is owed... if its for a traffic accident, it sounds like some sort of legal judgement related to driving without insurance. which is a criminal matter. Because if he had insurance... he wouldn't owe $14k for a traffic accident. Insurance would have covered it.
Yeah he didn't have insurance, but back in 1996 it wasn't criminal not having it.

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