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BMO cancels Personal Line of Credit
November 7, 2019
9:33 am
GICinvestor
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I can’t believe it. No warning. A letter advising it will closed due to non use. We have been with BMO for decades with mortgages, loans and MasterCard.

What should I tell them?

November 7, 2019
10:14 am
Oscar
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Thanks for nothing .
I had a line of credit ( overdraft ) with PC and they used it for their own ends and I had to pay the fee. Had a safe deposit with CIBC , they were closing the branch and transferring the box. Sent me a letter saying nothing changing. Last minute received letter saying box will be drilled . Went to branch , had to switch boxes. Then came the new year and fee was charged to my PC account . It was in the fine print of the new box contract. Used to pay cash every year. Went into overdraft , they made money. You don't use it either why leave yourself open ?

November 7, 2019
10:20 am
Selkirk
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.
WOW ... we are the same (decades) with TD Canada Trust, but we've never received a letter like that❗

I'd go and talk to them (Branch Manager), and request that your personal line of credit be maintained.

Let us know how it goes.

November 7, 2019
11:11 am
lhsaid
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I've been with CIBC (line of credit ONLY) for at least 15 years, I only used it couple times when I need cash, I deposit a cheque at the bank machine then withdraw cash (to avoid interest). Time to time they call me asking if there is something I need so that I use my line of credit, I answer NO, I'm happy the way it is. And, life continues 🙂

November 7, 2019
12:09 pm
GICinvestor
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Oscar said
Thanks for nothing .
You don't use it either why leave yourself open ?  

Exactly. Thanks for nothing BMO!!!

I did use it many many years ago to buy a car for my daughter. In the odd bank visit to review our accounts we were told it was inactive. Meaning that if I did write a cheque it would kick in a manual process to activate the account. But what if that did not work? I am not going to have egg on my face if the cheque becomes a problem. I was offered a MasterCard to use it with the PLOC but declined.

I know I have a very good credit rating as a few years ago I moved out of Coast Capital to Vancity and was offered based on my credit rating a Vancity Visa and a PLOC. I declined because the Visa card was some crappy points plan and the PLOC I declined too becase of the one I had at BMO.

So to answer your question. I have it as part of our financial strategy. If for some reason we cannot pay our credit cards I would used the PLOC to pay them and then pay off the lower interest PLOC account.

They also say they will advise the credit bureau of this and will allow me to reduce my credit liabilities. I have never worried about credit bureaus as I have never had any credit issues, non payments or late payments. But 'what if' the bureau looks at me as a problem and as a result BMO cancelled my PLOC?

No I am not paranoid.......just pi$$ed off.

November 7, 2019
12:58 pm
FMC
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BMO did the same to me a few years back on a PLOC I had with them for about 20 years. Closed it out of the blue - no warning. Was notified as the OP was.

November 7, 2019
1:25 pm
Londonguy
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GICinvestor said

They also say they will advise the credit bureau of this and will allow me to reduce my credit liabilities. I have never worried about credit bureaus as I have never had any credit issues, non payments or late payments. But 'what if' the bureau looks at me as a problem and as a result BMO cancelled my PLOC? 

Confining myself to this aspect of your issue, worry not about your credit bureau appearance -- it will show up in your file as closed but non-derogatory, meaning that it has no negative connotation to a credit issuer.

The only theoretical impact will be to reduce your overall credit capacity and therefore your utilization ratio, but for old farts like us with decades of credit history, that won't move the needle much if at all

November 7, 2019
1:44 pm
GICinvestor
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Thanks Londonguy.

November 7, 2019
2:23 pm
Winnie
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My RBC Visa was also cancelled after 1 year of inactivity.
Just received a notice in the mail, no warnings, etc.
I'm RBC customer from 1989, have chequing, savings accounts and line of credit.

November 7, 2019
3:30 pm
Loonie
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TDCT closed my USD MC account without warning a few decades ago. I was very annoyed because I'm the sort of person who plans ahead. I had opened it, knowing I would not use it much immediately but would use it a lot in a couple of years. So much for that idea! I was so annoyed that I didn't bother trying to re-open it. I just stuck with my CDN $ from another bank.
I had both USD savings and CDN chequing/savings accounts at TD at the time. The CDN accounts were in regular use.

I would be very annoyed about the loss of the LOC. The fact that you haven't used it should be irrelevant, given that the purpose of the account is that it only be used when needed, usually for something short term and unexpected - although I know some people do keep them revolving indefinitely. Just because you haven't needed it for a while doesn't mean you might not need it tomorrow. The most upsetting thing is that, if they take it away, the time when you most need it might be a time when you have trouble qualifying for it, despite your excellent credit history. If you are still working and become ill etc., and can't work for a few months...

I am wondering if the lost LOC was secured or not, and am guessing it was not. There would be legal complications and costs in cancelling a secured line of credit. Perhaps, though, if you really want it to be there for you, that is the more reliable way to arrange it. But it costs money to do it that way.

One of the more annoying features about losing a credit card unexpectedly might be the loss of accumulated reward points. Use 'em or lose 'em has new layer of meaning!

I think we could all agree that they are entitled to have a "minimum required usage" policy if they want, but they ought to be transparent about what it is.

November 7, 2019
3:33 pm
Rick
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GICinvestor said
I can’t believe it. No warning. A letter advising it will closed due to non use. We have been with BMO for decades with mortgages, loans and MasterCard.

What should I tell them?  

If you want to keep it, use it before they close it. Go 20 bux into the red for a week or two. Cost you less than 50 cents for a month. Motive is discontinuing O/D protection altogether. Disappointing....don't qualify to be a d2d banking service if you can't go into the hole between the time they deduct your scheduled payments and your paycheque gets deposited. Have to rethink my whole banking method. At least I kept the regular savings account open so I can pay bills with that cash. Just can't go into negative balance. Lot more shuffling of funds to tend to. Not happy. I asked "what happens when they pay scheduled bills early in the AM but my paycheque doesn't get deposited for another hour or two?" They said set up your bills to be paid the following day (Saturday). Problem is even if I set them up for a Saturday, doesn't get processed until next business day. . .2 or 3 days makes a big difference to me. I said would be easier if you did your sweep at 9:00 AM instead of 5:30 so my cash was there when you paid my bills. Doubt if that happens.
Sorry...I digress. Not pleased with them. May have to go back to CCsf-yell just to pay my bills.
Tang just didn't care I haven't used my LoC in over 5 years. Called them up and cancelled it after they put the new fees on it.

November 7, 2019
5:30 pm
GICinvestor
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Loonie. Not secured.

Rick. Arrrrrgh please don’t do it! Try Vancity. Hands down a thousand times better than Coast Capital.

November 7, 2019
6:02 pm
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So until I hear back from BMO I am thinking reducing use or cancelling my BMO Mastercard. Is our main card and we spend thousands on it every year. We do not use cash.

It is a no fee cash back Mastercard.

So does any one have recommendations for a replacement Mastercard that has:
Cash back
No fees
Online statement delivery
Email and/or texts for:
Every purchase
Statement is ready
Payment due date for $xx on Mmddyy
Payment received for $xx on Mmddyy

November 8, 2019
4:40 am
Alexandre
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Consider Tangerine Mastercard.

To have most benefits from their MC, you'll have to open Checking and Savings accounts with them, I think, but there are no minimum balances on those.

No fees
Cash back
Online statements
Extensive set of notifications including for every CC charge above X dollars

I've used Tangerine Mastercard since it were introduced.

Also, by having Tang accounts you'll be subject to their promotions for bonus interest rates and occasionally might decide to park some money there to get better interest on savings during promotional period.

November 8, 2019
7:18 am
Londonguy
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GICinvestor said
So until I hear back from BMO I am thinking reducing use or cancelling my BMO Mastercard. Is our main card and we spend thousands on it every year. We do not use cash.

It is a no fee cash back Mastercard.

So does any one have recommendations for a replacement Mastercard that has:
Cash back
No fees
Online statement delivery
Email and/or texts for:
Every purchase
Statement is ready
Payment due date for $xx on Mmddyy
Payment received for $xx on Mmddyy  

If you're just looking for a decent base card that has a low income threshold for qualification, get a no-fee Brim MC. You will get everything you listed while earning 1% cash back, plus you will also not get charged the extra 2.5% ripoff fee on US$ transactions that almost every other card charges. Brim card rewards come in the form of cash.

Alternatively, if you can qualify for a card with an $80K income requirement, depending on your spending habits, retail preferences and available local grocery/gasoline infrastructure, among no-fee premium cards you could choose (1) the PC Financial World Elite MC or (2) the Canadian Tire Triangle World Elite MC, or (3) the Rogers World Elite MC.

November 8, 2019
7:52 am
lhsaid
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If you can get "Canadian Tire Triangle World Elite", it also offers:
- Road Side Assistance for free
- 4% back in CT Money at CT, SportCheck, Atmosphere, Mark’s, L’equipier Stores
- 3% back in CT Money on groceries up to 12K/year,
- 5 Cents/Litre back in CT Money at the CT Gas pump (Regular),
- Car rental Collision/Loss Damage Waiver Insurance up to 31 days,
- Almost free oil change/wash coupons every year
- Occasionally, you get some incredible discounts at sport's check -- email offers

November 8, 2019
11:28 am
GICinvestor
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Rick said

If you want to keep it, use it before they close it. Go 20 bux into the red for a week or two.

Thanks Rick. The letter says it WAS cancelled. The dated letter arrived 3 weeks later. And the cowardly scribbled initials, signature was not identified in typing as you would normally do when typing a letter. No warning like I said. Just checked online and the PLOC no longer shows as an account. Poof! It’s gone! My wife uses this account. It works good for us as her main account is BMO and mine is Vancity. BUT I wouldn’t hesitate to cancel all of our BMO accounts.

I wrote BMO using the online messaging yesterday and no reply as of yet. I had mentioned a few other issues as well brought on by them, BMO, that weakens our loyalty. Loyalty? What loyalty? I asked for an email reply.

November 8, 2019
11:51 am
Selkirk
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Alexandre said

Consider Tangerine Mastercard.

To have most benefits from their MC, you'll have to open Checking and Savings accounts with them, I think, but there are no minimum balances on those.

No fees
Cash back
Online statements
Extensive set of notifications including for every CC charge above X dollars

I've used Tangerine Mastercard since it were introduced.

Also, by having Tang accounts you'll be subject to their promotions for bonus interest rates and occasionally might decide to park some money there to get better interest on savings during promotional period.  

Ditto ⬆

All you have to do is have a dollar in a Tangerine SA, and you can get 2% Cash-Back on three (3) different purchase categories ... and you get to pick those categories.

For all the other categories, you only get 0.5% cash-back with the Tangerine CC, so for those categories we use a different no-fee CC with a 1% cash-back.

It works quite well for us. sf-cool

November 8, 2019
11:58 am
GICinvestor
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Hi. Thanks.
Tangerine is BNS?
Where do you find the definition of categories?

November 8, 2019
12:30 pm
Selkirk
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GICinvestor said

Hi. Thanks.
Tangerine is BNS?
Where do you find the definition of categories?  

Yes, Tangerine is a wholly owned subsidiary of 'Scotiabank' (BoNS).

Tangerine CC 2% Cash-Back Purchase Categories :

- Groceries *
- Furniture
- Drug Store
- Restaurants
- Recurring Bills *
- Hotel/Motel
- Auto Gas *
- Home Improvement
- Entertainment
- Public Transportation & Parking

* = my three categories.

More details ➡ https://www.tangerine.ca/en/products/spending/creditcard/

Of course, the colour of the card
has to be ⬇ ... LOL sf-laugh

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