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Sunday, June 24, 2012

In need of credit? Forget about going with RBC Royal Bank. Read my story

I have a $10 000 credit line at RBC and the interest rate used to be 7.52%. But that all change a couple of months ago when I received a letter from RBC Royal Bank saying that my interest rate was going to be increased of 3%, from 7.52% to 10.52%. I never missed a payment on my RBC credit line, I have a very good credit score, I never missed a credit payment as far I am concern. A couple of months ago or even now, the prime rate hasn’t change. So what had changed?

The way RBC Royal Bank does business has changed. Unfortunately, among the process, they might have taught I was someone to mess with but unfortunately for them, they had knocked at the wrong door. That happens when I was in New Brunswick. I went to my local RBC branch and was told by the manager, a poor guy, that the cost of borrowing had increased, so the bank had no other chosen than to increase interest rate on their products. He also told me that other banks were going to follow soon.

I wasn’t exactly impressed by RBC for doing that to me. The manager of the branch was a f idiot, but the representative I was dealing with had made efforts to decrease the interest rate a bit for me, but I wasn’t able to get better than a 9.30%. I told him it was ridiculous, that the prime rate hasn’t change, that I never missed a payment what so ever, and I told them that if I wasn’t getting my old interest rate back, that I will sell my mutual funds and transferred everything to someplace and that I will never used RBC products, banking accounts etc ever again. I told him that they were going to lose all of my business.

Time passed by and nothing else had been done to facilitate my life. RBC decided to keep their f 9.30% right there and RBC decided to lose a customer.

Right on.

I was waiting for the TSX to perform better before selling my RBC mutual funds, but I may act now, whenever I am in the vibe to say a big F U to the RBC Royal Bank.

My investment portfolio is performing very well and those investments I have in different RBC mutual funds never performed as well as my portfolio. On top of that, RBC is charging very big management fees and it simply doesn’t worth it for me anymore to have money invested at that bank. I just cannot wait to have the money transferred over TD Waterhouse and have some new investments made in my very own RSP account.

RBC Royal Bank should have known better.

Now, they are losing business over my RBC mutual funds fee, but on top of that, they are losing business over interest fees on my RBC credit line. Because believe it or not, I have decided to pay off that RBC credit line. Why? Its not because of the pressure made by RBC by increasing their interest rate on MY credit line. No no. No one have control over me. I have decided to pay off my RBC credit line because I have extra money and I am running out of investment ideas. So instead of just throwing the money away in stuff I have no real interest in, I have decided to pay off the credit line.

On my RBC Royal Bank credit line, I currently have left $4 485.66 that need to be paid off. I plan to have it clear off by the end of the summer and I also plan to have the mutual funds sell and transferred by the end of the summer.

Its going to be a fun summer right? RBC Royal Bank bunch of little F@ckers shouldn’t have messed up with me. I am finally going to get rid of those mutual funds after all.

Anyone facing the problem, interest being increased on a product for no reason, no change in prime rate, no payment skipped, should do exactly the same thing: sell off, paid off and closed the f account and let the F@ckers know how you are.

14 comments:

unbalanced said...

Good for you. Don't ever let any institution push you around.

Anonymous said...

Hi Sunny..

I have an unsecured line of credit from TD with an interest rate of 8%.
Try opening an account @ TD.

Mark

Sunny said...

Thanks for the support Unbalanced :)

Hi Mark,

I already have a credit line with TD, that's the one that is actually paid off. I also have my RRSP loan with them. TD is the best for any types of credit. I have everything with them, including my broker account and a 2.9% credit card balance transfer. So I really have it all with TD. At least, they know how to do business. RBC has a lot to learn from them.

Bob said...

You did the right thing. They tried to rip you off and you showed them they can't treat you like that. So instead of them getting some interest each month, now they will get zero. They pay the upper management enormous money after taking money from us. Thanks for sharing your stock ideas, keep up the interesting blog!!
Bob

Sunny said...

Thanks Bob. I was very upset. I will sell the mutual funds for sure, I will just not let RBC do whatever they want, especially when there's no change being applied for the prime rate.

Its a good opportunity for me to reduce my level of debt, but at the same time, I am tempted to invest. But at this point, I am out of inspiration. Maybe some REITS could be great and a ETF Bonds. Some stuff to think about. I am not huge over paying debt. Its a difficult time for me, especially now while being stuck in a 4 months contract in a job that exhausted and stressed me.

Anonymous said...

Does anyone here have a questrade account? They also just raised their interest rate from prime+1.5% to prime+3%....so I use to pay 4.5% and now I have to pay 6%....RIDICULOUS!!

Sunny said...

You mean for a margin account? With TD Waterhouse, its like 4.50%... Better switch.

Anonymous said...

Sunny, now is not the time to buy a bond fund, you would get a better return by paying off debt as bonds rates are at a all time low.

If you're paying 4.5%, that's a 4.5% return guaranteed, which will be very hard to get from a bond fund.

Also, a few of your stocks seems to be in trouble, Ex. PGF, DGI,

Anonymous said...

It sounds like RBC is better off without you as a customer.

Anonymous said...

This just happen to me a day ago...was sent a letter telling me my 5.25% line of credit was being increased to 6.25%!!! Not impressed as we also paid it every month faithfully. I am ticked off and frankly looking for options. One option being transferring all our accounts to a new bank. WTF!

Chris Jung said...

Yes, I'm having trouble with my RBC line of credit too. I have had it for over 8 years, and they just sent me a letter for this Christmas season that says that I don't meet they're qualifications anymore and I have to pay they $175 a month and they're closing it. I went to my local branch and the clerk told me I have to call their collections department. I call the collector, who was a nice guy, but he basically told me that I don't make enough money anymore so they're collecting and too bad. Anyhow, I'm going to make it as tough, and expensive on RBC as I can, which I can do, because my dad is a manager at a big realty firm and I'm going to see that him and his agents stop using rbc. I'm going to spread some dirt on them in blogs and cheap newspapers too.

Anonymous said...

Exact same issue, perfect credit and never missed a payment! They lent me $50,000 loc for my rental cabin to be built. Fine, it would be unsecured at 6.25% in a year I finished the cabin and started renting it out. Well they decided since it was not being paid off they would just add 4% to it, which increased the interest only payment up 25%. Well now I am making interest and principle payment good right! No they increase it again to 12.35% wtf. I call them and they say we cannot put it in a loan at lower interest. Because your credit score is low. I am like why? and they said you have a lot of credit. I said you gave it to me! now I have to much so you up the interest to make it nearly impossible to pay back!!! What to do? Frustration! And dissapointed trapped by them!

Sunny said...

Sorry to hear this! Royal Bank is not a good reliable bank for middle class. Just a bunch of fuckers. I am telling you! You are another proof of that. Unfortunately, they are making money like crazy and they are sucking the money whenever they can so they can pay their CEO millions and millions of dollars, and not to forget us, investors. What you are going through suck like crazy. RY have very poor human skills to manage this kind of situation.

Thank you for sharing.

Sherry Penney said...

Same thing just happened to me mine went from under 10% to 14.5%. The girl on phone just said to me well its to be paid off and I said it's an interest only which has been in good standing for years I just haven't been able to pay it off but they grab their interest every month soooo pissed right now

 

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