Q&A: Bank raised interest rate
Question: I have a secured line of credit which for several years had a rate of prime plus 0%. Last year the financial institution increased the rate to prime plus 1% citing market conditions and not my credit history as the reason. I would like to ask the bank to reduce the rate from prime plus 1% back to prime plus 0% and ask your advice on how to do this. – Tracy J.
Gordon Pape answers: Prime plus 1% seems out of line for a secured PLC. You should be paying no more than prime plus a quarter. Ask for a meeting with the manager and state your case. The more business you do with the financial institution, the greater the odds they’ll see things your way. If they refuse, shop around and, if need be, move the account elsewhere.