# TD raising LOC rate...why?



## rusty_shackleford (May 18, 2012)

I've been a TD customer in good standing for about 15 years. I currently have a credit card and unsecured credit line with them (though in the past I've had a chequing account and auto loan as well). Just the other day I got a letter in the mail saying that they were raising my interest rate from 7.5% to 10%. This is the second time they've raised my LOC rate out of the blue. And this isn't prime rate of course but my rate on top thats being raised. I checked in with an adviser and he couldn't explain it either nor could he convince his superiors to lower it back down. My credit score is 780, I've never missed a payment across any of my accounts, TD or otherwise. What gives?


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## james4beach (Nov 15, 2012)

I'd be very interested to know if anyone else is seeing this too. Even at other banks... anyone seen their LoC rate increase?


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## mind_business (Sep 24, 2011)

Ours is set at Prime +0.5%. Currently it's at 3.35%.

There's something weird about jumping from 2.5% (which is below prime right now) to 10%. Did you sign up for a limited duration for the low rate? Keep pushing TD. There's something wrong there.


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## rusty_shackleford (May 18, 2012)

mind_business said:


> Ours is set at Prime +0.5%. Currently it's at 3.35%.
> 
> There's something weird about jumping from 2.5% (which is below prime right now) to 10%. Did you sign up for a limited duration for the low rate? Keep pushing TD. There's something wrong there.


Sorry I wasn't clear. It went from 7.5%-10%, a difference of 2.5%


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## sando (Jan 22, 2015)

I just checked my TD LOC and there are no changes to the interest rates. Sounds a like a strange situation, especially if TD does not know why it's changed.


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## 0xCC (Jan 5, 2012)

I do the majority of my banking with TD as well as all my investing through TDDI (aka TD Waterhouse) and I have an unsecured line of credit that I haven't touched in years. I just checked and the interest rate on that is TD Prime + 2.0% which is currently (2.85 + 2) = 4.85%.

If you don't do most of your banking with TD I would think this could be the time to explore your options with your main bank and see if they can beat the new 10% rate. My guess is that with the credit rating you have and your other business they would be happy to. Since this is an unsecured LOC it shouldn't be too much of a hassle to transfer from a newly set up LOC from another lender and close the TD one. That seems like a pretty high interest rate in today's climate.


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## lb71 (Apr 3, 2009)

mind_business said:


> Ours is set at Prime +0.5%. Currently it's at 3.35%.


This sounds like a secure line of credit.


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## mind_business (Sep 24, 2011)

lb71 said:


> This sounds like a secure line of credit.


Correct. I thought the OP had made a mistake when he had originally posted his starting rate at 2.5 percent ... which would be a secure LOC. He has since corrected the original post.


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## pwm (Jan 19, 2012)

10% is crazy. My NS LOC at TD is 3.85%.


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## mind_business (Sep 24, 2011)

Everyone signs documents when opening new accounts or obtaining personal LOC. Somewhere in the document (agreement) you signed, it will spell out what the bank is allowed to change regarding rates, and when. What does your LOC agreement specify???

I think we're missing part of the story. 10% with a good credit rating doesn't make sense.


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## CalgaryPotato (Mar 7, 2015)

Odd situation, but you should be able to do better. Phone around, they obviously don't want your business very badly.

My unsecured with RBC is 5.6%, although I did get it over 10 years ago.


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## 1980z28 (Mar 4, 2010)

?????


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## newuser (Sep 16, 2014)

OP obviously doesn't generate enough revenue for the bank. To get a better rate, consolidate all your banking business (investments and especially debt) and shop your whole portfolio around.

Or for whatever reason the bank's system has flagged OP's account as high risk. Remember recently people with Iranian connections had some banking troubles. Could be something like that.


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## rusty_shackleford (May 18, 2012)

Thanks for the replies. There really isn't any more to the story. Perhaps it is just that, since I only have a credit card (don't carry a balance) and LOC with TD, that I'm not giving them enough of my hard earned money. As I said, even the advisor couldn't figure out why they raised it. I also have an unsecured LOC with RBC at 5.5%. Needless to say, TD won't be getting any more of my business


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## IFITSTOBEITSUP2ME (Mar 6, 2015)

All our banking is with TD banking and Waterhouse. TFSA's RRSP's margin accounts, visas, numbered company accounts personal accounts and same with our daughter. To be honest if it wasn't for how much hassle we'd have to go through to change over everything, we'd leave them in the dust. We've found they have just got so greedy in recent years and after 18+ years of our business the minimum balances and charges for paper statements etc just floors us.

Our secured line of credit several years ago they changed from Prime to prime plus .5% stating because interest rates had dropped so drastically, they couldn't operate at prime any more. Many friends had the same experience with these letters coming out and nothing we could apparently do. When the rate went back up to 3% they didn't reduce it back down until I mentioned a couple of months later to our known for years to us personal banker who got it changed and retro credited. It was changed back down immediately, but I do wonder how many other folks didn't pull TD back up on it when the prime rate increased back up and are still paying the extra .5% ? It has now dropped the .15% further recently automatically = 2.85% today.

Just mentioning the last paragraph in case anyone else experienced similar and neglected to remind them to change it back down a few years ago when the prime rate changed back up, and it helps you.


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## OnlyMyOpinion (Sep 1, 2013)

Our accs are all with big green as well. But we keep min balances, pay our cc off each month and don't find it necessary to have loans/loc so we don't pay any monthly fees. Guess its all how you choose to spend your money. We choose to not spend it on fees.


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