We're going to have to keep a close eye on the big banks this recession because weird and nasty stuff is starting to happen.A couple of reader complaints have come in over the past few days about a notice received from Toronto-Dominion Bank concerning lines of credit. Get this: TD intends to introduce an annual $35 inactivity fee on April 30 for people who have unsecured lines of credit, but don't use them.
Talk about a stimulus for spending in tough times. If you have no outstanding balance on your credit line and don't do a transaction over a span of 360 consecutive days, you have to pay your bank a fee.
Not using your line of credit? Pay up!
Tue, 2009-01-27 18:13
#1
Agent 204
Not using your line of credit? Pay up!
Tue, 2009-01-27 23:11
#2
RevolutionPlease
Kind of makes sense though if they're tightening their belts. Doesn't bother me. Why have it?
Tue, 2009-01-27 23:19
#3
I know the BMO raised interest rates on thier line of credits.
______________________________________________________________________________________________ We are like cloaks, one thinks of us only when it rains.
Wed, 2009-01-28 01:23
#4
Someone told me today that the Royal Bank was doing the same about charging for not using the line of credit, so they are leaving that bank.
Why doesn't the whole Canadian population switch to credit unions?
Wed, 2009-01-28 01:54
#5
Frustrated Mess
The credit union I once belonged to serving neighbourhoods rebranded and has replaced neighbourhood branches with big box outlets. If you must use a bank just know it is a bankster.
Wed, 2009-01-28 07:57
#6
My credit union isn't much better when it comes to fees. And it's also really hard to get loans from it, from what I understand from friends who try to get loans from them. So, unfortunately, while it's probably more progressive to support credit unions, I haven't experienced much of a financial benefit from doing so.
Wed, 2009-01-28 08:22
#7
Boom Boom
I don't have any problem with my credit union - I've gotten several loans from them over the years, and they seemed happy to work with me through a CMHC mortgage. I'll check to see if Desjardins offers a credit card - if so, I'll apply, and cut up the others I have.
Wed, 2009-01-28 11:52
#8
I don't have any problem with my credit union - I've gotten several loans from them over the years, and they seemed happy to work with me through a CMHC mortgage. I'll check to see if Desjardins offers a credit card - if so, I'll apply, and cut up the others I have.
I think your credit rating benefits from having your two oldest credit cards be.... old.
Wed, 2009-01-28 13:23
#9
Boom Boom
I didn't know that - thanks.
Thu, 2009-01-29 10:32
#10
Maybe neo-con ideology is seeping into boardrooms. I feel the Credit Union movement will go the way of the co-operative grain elevator movement.
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why is it that polling booths look like cattle chutes?
Thu, 2009-01-29 11:17
#11
Is it just me or does TD rhyme with greedy?
Ordinary Canadians are paying too much each year due to price gouging and hidden fees. Jack Layton and his team of New Democrats will stop the rip-offs and strengthen consumer protection:
Reduce overcharging and hidden fees, and ban ATM fees for institutions regulated under the Bank Act, by requiring more accountability and transparency from the cell phone companies, the banks, airlines and other companies. This will include ending unfair charges on incoming text messages.
Limit outrageous interest rates and fees charged by "fringe banks". We will enforce existing regulations to limit the interest rates and fees that can be charged for services like "payday" loans, tax refund advances and cheque-cashing.
Cap the interest rates on credit cards to a maximum of 5 percentage points over prime by amending the Bank Act.
Thu, 2009-01-29 19:08
#12
I think what has to be done is to reduce the rate of usury, which I believe is at 66% down to something more realistic like 30%, or a fixed percentage above the Bank of Canada rate. Say, B of C rate, + 20% would set the usury level.
Of course, that means that many people wouldn't qualify for loans. And, they'd be better off for it.
Additionally, no distinction should be made between "fees" and "interest". Courts have already indicated that the so called fees charged by pay day loan sharks are in fact interest. This just needs to be extended to ATM "fees" and so on.
However, since the banks own every Liberal and Conservative M.P. and senator, do not hold your breath waiting for this to happen, Fidel.
Thu, 2009-01-29 21:01
#13
It's not just you, Fidel. It's George Stromboulopoulos too, who used that line on his show last night. :D
Thu, 2009-01-29 21:24
#14
M. Spector
I think what has to be done is to reduce the rate of usury, which I believe is at 66% down to something more realistic like 30%, or a fixed percentage above the Bank of Canada rate.
The criminal interest rate limit is 60%.
Why do you think 30% is "realistic"? Should any consumer ever have to pay such an interest rate?