BMO cancels Personal Line of Credit | General financial discussion | Discussion forum

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 ?

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 🙂

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.

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.

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.

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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.

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