BMO – Line of Credit
This event occurred on December 2008 to January 2009. I called BMO direct banking on December 24 to request for an increase on my existing line of credit from $5000 to $2100 for a car loan.
The call took approximately 1 hour to answer all questions, waiting on hold and transfer to another department. I was informed that the interest rate is 6.75% to which I agreed.
Followed up a few days later on the status of the application and was informed the request is approved with conditions. The conditions were to provide numerous documentation such as proof of employment, ids, payroll stubs, tax returns, etc… I mentioned to the Direct Banking Manager that this process was far more cumbersome than when I applied for my mortgage especially since I already have an existing line of credit.
I was instructed to bring the documentation in person at a branch. I requested transit 29792. I went to the branch on January 29 with the documentations requested. Due to mis-communication and misunderstanding on their part, I was requested to provide additional documentation. I emailed the docs on December 30 to the branch.
Not until I inquired on January 5 that I was given an update on the application’s progress. I requested the line of credit agreement documentation be sent to the Yonge and Eglinton branch for me to sign.
It took 2 days for the paperwork to arrive at the requested branch. When I came in to sign, I noticed the interest rate was at 7.75%. After some investigation, I was informed that the initial interest rate was to increase effective March 1st, 2009 giving me less than 2 months at 6.75%. I told the BMO manager that had I been told this during the initial application process, I would not have proceeded with this cumbersome and frustrating process since the car dealer financing rate was 7.9%. The 0.15% difference is not worth all the hassle I went through!
I still proceeded with the application.
When I got back to the office, I called President’s Choice Financial and requested a line of credit. In less than 1 hour I was approved for a line of credit and a car loan for $22000 each with an interest rate of 5.55% (variable) and 5.7% (fixed) respectively. I only needed to fax my tax return assessment for the previous 3 years. Four days later, I signed the necessary documents at one of their pavillions. Within 1 week of the call, I had both line of credit and car loan available to me.
The experience between BMO and President’s Choice was night and day. As a long time (former BMO employee) customer with a mortgage, numerous investments and bank accounts with BMO, this experience has left a terribly negative image of BMO and will prevent me from pursuing any future business with them.
Disclaimer
This article was submitted by one of our readers. Penciltrick cannot make any claims as to its authenticity but the article was accepted on a good faith belief that it is an accurate and truthful account of the events listed.
February 15th, 2011 at 6:25 pm
I had an issue with the line of credit process as well. I went through the online process and recieved a call the next day informing me that I was not able to recieve a line of credit from BMO. I called and asked why they told me that my credit rating was too low. I checked my credit and all looked sound. I went to the dealership the next day and I was financed with another bank no problem. And my credit score was much higher than BMO told me and high enough to have recieved a line of credit from BMO.
I contacted the Branch Manager and expressed my concerns, he said he would call me back in a few days. Almost a month later I heard nothing and went to see him at the bank. He had no answers for me and no apology. I have now contacted the Cheif Executive Officer of BMO to express my concerns.
March 10th, 2011 at 9:35 pm
I have been a bank of montreal customer since 1991 & a business account holder since 1997.
I think the bank of montreal is the worst bank any consumer or business owner could do business with! I have put millions of dollars and paid thousands in fees for the past 14 years, I was recently notified they were calling my line of credit and are now using legal methods to collect the debt! Bank of montreal has caused nothing but grief for myself and family,
The economy is an issue “dummies” that’s why sales drop! Vendors want to be paid up front stupid becuase you sent back my cheques when there were sufficient funds in my account stupid. And if you think you know how to operate a business you spineless idiot you should try it sometime, perhaps you might actually make it through one month all give you two before you screw up!
No business owner should bank with them they do not support you the business owner! If anyone out there is going through the same issues I would like to hear from you.
August 24th, 2011 at 11:30 pm
There are thousands of shareholders, stakeholders, employees who earn their living off BMO. I worked for BMO and there were d*K heads who would come in to the branch to tell me that they were putting my kids through school. I want to ask each one of you..dont you leave your house every single day to earn money?
Secondly, It just made me laugh when people compare BMO to PC..are you effin kidding me? BMO was the first bank in Canada. If you would have moved your ass to a branch right from the get go..you would have saved yourself a hassle.
Lastly, every bank has different lending policies. One might want to lend to you while another might deny. Its the way they do business. After all, they are lending the most important asset known to mankind..”MONEY” I worked as in commercial credit and to be really honest BMO is a conservative bank. While other competitors like the green bank will give five if you are alive.
November 28th, 2011 at 1:38 pm
Incompetence, arrogance, lies and boarder line criminal.
By covenant of mortgage BMO is obligated to pay my property taxes and for the past 3 years they have consistently paid late and passed on the penalties and interest charges for me to pay. Three charges under the criminal code apply (332: missapropriation of money held under direction) (330: theft by person required to account) or (336: criminal breach of trust) not to mention that they demanded I do the audit as they did not believe that they were responsible. They did reimburse me for the actual amounts (in excess of $1400) for penalties and interest but they refuse to pay the interest I would have received if the monies were in the account and refuse the bill I sent for the audit. Off to court in the New Year!
Now they want me to close an account I have had for 18 years because I have an old account that incurs no service fees and have given be 30 days to get my affairs in order. I will have to print up 5 years of epost, and change all of my online billers. Thanks Guys!
As for their lending policies, I would understand if they were offering super competitive interest rates but they don’t. Or maybe if one was of a nature that there was an issue of risk management. I have a whack of real estate equity, a very successful business, a great accountant and do everything by the book and they still give me nothing but a hard time with my financing.
It’s time to take this show on the road, maybe a credit union or private institution not considered a chartered bank. These big boys need to grow up and act like real men. (Not to insult the many successful women in the industry). I could go on ranting as this is just the tip of the iceberg, and the big green is not much better.
February 23rd, 2014 at 9:41 pm
I am business owner and I have business account with BMO I have all kinds of problems with them stay away from BMO they are sucks and they don”t care about you or your business all what they care about is how to take your money.STAY AWAY FROM BMW