I almost missed it, but there was a small entry on my April monthly "Personal Line of Credit" statement from CIBC. I looked closer, and realized that the rate I am now being charged is 1.0% HIGHER than previously, the month before. My PLC is unsecured, maximum $10,000; I have had it for over 35 years…
The entry was "April 06... PLC RENEGOTIATED" with a zero amount entered.
Renegotiated? by the bank; I had nothing to do with it!
My new rate is 4.75%, based on a “Current prime interest rate” of 2.5%. The month before my rate was 3.75%.
I asked an officer about it and she said that the rates went up for everyone, including herself (!); for some people the rates went up 3%, and some other banks rates’ went up to 18%. I did feel a little better, since mine ‘only’ went up 1%. She also mentioned that the basic ‘bank rate’ rate dropped today by 0.25% (so my new borrowing rate will be 4.5%).
I thought the Bank Of Canada was lowering interest rates in order to stimulate the country’s economy. This CIBC maneuver is doing the opposite. anyone else notice this happening to their loans / lines of credit accounts?
The entry was "April 06... PLC RENEGOTIATED" with a zero amount entered.
Renegotiated? by the bank; I had nothing to do with it!
My new rate is 4.75%, based on a “Current prime interest rate” of 2.5%. The month before my rate was 3.75%.
I asked an officer about it and she said that the rates went up for everyone, including herself (!); for some people the rates went up 3%, and some other banks rates’ went up to 18%. I did feel a little better, since mine ‘only’ went up 1%. She also mentioned that the basic ‘bank rate’ rate dropped today by 0.25% (so my new borrowing rate will be 4.5%).
I thought the Bank Of Canada was lowering interest rates in order to stimulate the country’s economy. This CIBC maneuver is doing the opposite. anyone else notice this happening to their loans / lines of credit accounts?