It’s insidious and it’s just plain wrong when your bank uses the guise they are helping you when in actual fact they are hurting you. When the banks are doing everything in their power to rob Canadians of their financial wealth and their interest, fees, penalties and ‘tricks’ it’s time to stop trusting the bank. We can’t sit by and watch this happen. We have to speak out for the little guy just trying to make it from paycheck to paycheck, and we are trying to make a difference.                    

Sheldon a police officer and his wife Cecilia, a stay at home mom called last week. They own a modest home, live a modest lifestyle, have excellent credit and count their pennies. In other words, very solid, responsible people. He even works part time to keep up with the bills, while Cecilia is off work. They had a mortgage and a line of credit and no other debt. Last November, the bill for the line of credit came in advisng they didn’t need to make the regular $75/mnth interest only payment. So they didn’t. December same thing, so they didn’t. When January’s bill came in, the amount payable was $545. The clients were shocked and couldn’t make the full payment so they paid half. February’s bill came in at $545 plus $272.50 from the previous month’s balance. So now $817.50 was owed which was over ten times the previous ‘regular’ payment amount. They called the branch to find out how this could happen. The bank told them that they had the right to change the payment from interest only to a full interst plus principal payment, and went on to tell the client if they could not make the payment they could borrow from their line of credit to bring the account up to date. Incurring debt to pay a debt was the bank’s advice. Now there is a good(advice)solution…Not!        

We had no difficulty combining their mortgage and line of credit into a low rate mortgage at a affordable monthly payment. Sheldon has since closed their line of credit, left the bank and took their accounts to a Credit Union. because, as he told us, We can’t trust the bank anymore”       

Consumers at large need to wake up and smell the coffee. The banks were once our friends, but it seems, not anymore. Remember when you could sit down with the branch manager directly and get a loan? Not any more with centralized authority. And remember when the banks used to go out of their way to help you, when you had an ‘issue’. Not anymore. Those days are long gone. Never mind them holding your cheque for 7 days. The federal government just passed new legislation, among other changes, reducing the banks cheque ‘hold’ practices to 4 days. Thanks a lot. Big deal. Unfortunately the Feds did Absolutely Nothing about the unconsionable bank mortgage penalties, and the complete lack of accountability that prevails today. In other words, the smoke and mirrors continues with the banks not having to reveal how they calculate the penalties. Never mind the fees, the high interest, and the high loan payments they put you under stress with. Now it appears, deceit has entered the fray on top of ‘greed’. And as we wrote about previously, the new ‘Collateral Mortgage Products’ the banks have introduced, allow them to register the mortgage at 125% of property value, and the right to increase the interest rate to Prime+ 10% ‘if they feel like it’ This gives them ‘carte blanche’ authority and control over you. Moreover, it is extremely difficult and expensive to get out of it if you need to. Do you think they’ve gone too far?                             

We are here to protect you, isn’t it time to choose The Price Team, as your trusted financial advisor. We get you off the path to debt and into the plan for wealth. We’re just a phone call away(we will answer our phone, Live)or stop by our office on Tower Street South across from the old high school in Fergus. You’ll see our spokesman Don Cherry in the doorway. Hate or like him Don Cherry shoots from the hip(tells it like it is) just like us. By the way, our services to you are free OAC.