Personal Finance

TD unsecured LOC raises rate 3% after 20 years!

  • Last Updated:
  • Sep 23rd, 2018 8:43 am
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[OP]
Deal Addict
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Sep 10, 2003
1635 posts
155 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
79 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
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Oct 1, 2011
6337 posts
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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.)
Member
Mar 1, 2016
212 posts
130 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
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Jul 30, 2007
29350 posts
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Toronto
yikes.

Mine has been Prime + 2% for like 10 yrs now. All my banking is done with TD.
Deal Addict
Aug 2, 2003
2651 posts
402 upvotes
Toronto
BigDurian wrote: 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
2463 posts
1372 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
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Sep 10, 2003
1635 posts
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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.
Member
Jan 10, 2018
344 posts
197 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
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Sep 10, 2003
1635 posts
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Hamilton
Tommycoupons wrote: 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
Deal Addict
Oct 27, 2012
2460 posts
3910 upvotes
Toronto
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.
Member
User avatar
Sep 20, 2015
209 posts
222 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
6053 posts
2305 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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May 12, 2014
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Montreal
slotscanada wrote: bS lines like their cost of borrowing has increased, etc.
How do you know this it not true?
Member
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Sep 20, 2015
209 posts
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Ottawa, ON
ksgill wrote: 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.
Whether people are upset or not - these are business deals and you can't attach emotions to it. My point was mainly from business perspective that if one bank offers better rate and then only your current bank try to match that rate, I would not stick with my current bank because my bank does not value my business so it is better to move where you get some value.
[OP]
Deal Addict
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Sep 10, 2003
1635 posts
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Hamilton
So let me get this straight. You’re so rich and wealthy you never have to ever borrow money? Otherwise if you have had to you are ok with your lender doubling their rate with 30 days notice with no reaso. Or explanation provided? Glad you’re doing so well in life that a 50% interest increase wouldn’t bother you!
Deal Addict
Jan 30, 2012
1550 posts
903 upvotes
TORONTO
slotscanada wrote: Yeah me too, I threatened to move Waterhouse, TFSAs and RRsps and bank accounts. They don’t care.
So, take your business elsewhere. When TD's investment staff ask why are you moving your investments tell them why. I'm sure the free market will sort this out.
FrancisBacon wrote: How do you know this it not true?
If a bank's cost of borrowing went up it would be publicly known soon after:
The Canadian prime rate is well known.
The LIBOR ( https://en.wikipedia.org/wiki/Libor ) is well known.
The current yield on bank bonds is well known.

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