Personal Finance

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

  • Last Updated:
  • Oct 20th, 2020 6:53 pm
[OP]
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Oct 15, 2020
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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.
20 replies
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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]
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Oct 15, 2020
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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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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!
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Nov 23, 2014
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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.
Deal Addict
Dec 22, 2007
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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.
[OP]
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Oct 15, 2020
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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]
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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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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.
[OP]
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Oct 15, 2020
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@User455957 Do you feel better now? Get it all out of your system. Go and find some happiness in your life rather than being a troll.
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JamieSneider wrote: @User455957 Do you feel better now? Get it all out of your system. Go and find some happiness in your life rather than being a troll.
The unpleasant truth is that they can and they will come after you for the outstanding debt.
[OP]
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Oct 15, 2020
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@ProductGuy Can you tell me your experience or information? How do they do it - do they file a claim in a Canadian court or US court?
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JamieSneider wrote: @ProductGuy Can you tell me your experience or information? How do they do it - do they file a claim in a Canadian court or US court?
RBC Canada owns the RBC USA. I am sure you are considered a client of both. You couldn’t have opened the US accounts anyway without being an RBC Canada client. Find your client agreement for the US accounts, I am sure it says RBC USA is a subsidiary of RBC Canada.

Do you think the bank would not be smart enough to protect itself against this scenario? Everybody will be just walking way from their debt with RBC USA anyway. RBC USA is solely created for serving Canadians who need banking in the US but still reside in Canada.
[OP]
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Oct 15, 2020
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ProductGuy wrote: RBC Canada owns the RBC USA. I am sure you are considered a client of both. You couldn’t have opened the US accounts anyway without being an RBC Canada client. Find your client agreement for the US accounts, I am sure it says RBC USA is a subsidiary of RBC Canada.

Do you think the bank would not be smart enough to protect itself against this scenario? Everybody will be just walking way from their debt with RBC USA anyway. RBC USA is solely created for serving Canadians who need banking in the US but still reside in Canada.
RBC US serves many more people than Canadians and many of their clients are Americans. They took over some local banks to create a new joint enterprise. It was formed in the US under US laws.

RBC Bank (Georgia), N.A. (“RBC Bank”) is a U.S. national banking association supervised by the U.S. Office of the Comptroller of the Currency. RBC Bank is a trade name used by RBC Bank (Georgia), N.A. Our main office is located in Atlanta, Georgia, while our operations are headquartered in Raleigh, North Carolina. We provide banking services in all 50 U.S. states to Canadian cross-border and RBC Wealth Management clients. Our deposit accounts are insured by the Federal Deposit Insurance Corporation (FDIC) to the maximum amount provided by law, and we are an Equal Housing Lender. Securities, insurance and other services described on this site, or to which you may link from this site, may be provided by affiliates of RBC Bank or by third parties.


If the debt is American debt, held by an American bank registered in Georgia, how does that impact when the borrower is out of country? Is debt from one country transferable to another? This is not a US dollar account held at a Canadian bank. These are the things that I am trying to figure out. I was hoping someone would have experience with this type of matter. As otherwise we all have varying opinions and possible views.
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Jan 1, 2017
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JamieSneider wrote: RBC US serves many more people than Canadians and many of their clients are Americans. They took over some local banks to create a new joint enterprise. It was formed in the US under US laws.

RBC Bank (Georgia), N.A. (“RBC Bank”) is a U.S. national banking association supervised by the U.S. Office of the Comptroller of the Currency. RBC Bank is a trade name used by RBC Bank (Georgia), N.A. Our main office is located in Atlanta, Georgia, while our operations are headquartered in Raleigh, North Carolina. We provide banking services in all 50 U.S. states to Canadian cross-border and RBC Wealth Management clients. Our deposit accounts are insured by the Federal Deposit Insurance Corporation (FDIC) to the maximum amount provided by law, and we are an Equal Housing Lender. Securities, insurance and other services described on this site, or to which you may link from this site, may be provided by affiliates of RBC Bank or by third parties.


If the debt is American debt, held by an American bank registered in Georgia, how does that impact when the borrower is out of country? Is debt from one country transferable to another? This is not a US dollar account held at a Canadian bank. These are the things that I am trying to figure out. I was hoping someone would have experience with this type of matter. As otherwise we all have varying opinions and possible views.
Nope, they only serve only Canadians. They have no US branches. They bought the Us bank entity so they can legally serve Canadians who have US banking needs. There is no such thing as a free pass here. Check your account opening agreements and or loan agreements.
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Feb 17, 2017
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While US debts (or any foreign debts) are rarely enforced in Canada (at least for this amount) due to the difficulty and legal expense, I’d imagine RBC will pursue it as they’ll have a lot of experience in collecting US debt from Canadians.

They can just get a court judgement in the US and then apply to have it recognized here in Canada. The real answer to your question is Yes they can legally pursue you for it in Canada but it doesn’t mean they will.

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