A love letter, from CIBC

Funny thing happened on the way to the mail box yesterday. I received this letter from CIBC.  Here’s what it says:

Dear Middle Class Mom in Toronto,

In recognition of your valued relationship with CIBC, we have changed your minimum required monthly payment on your Personal Line of Credit (PLC) to offer you greater flexibility in managing your account.  Effective August 20, 2010, your minimum payment will be Interest, plus insurance premium (if any) owing on your PLC account as of the Statement Date. Previously you were required to pay a minimum payment of the greater of 3% of your outstanding balance or $60.”

It goes on to tell me how this will allow me to do the things that matter most to me, give me greater flexibility, manage my finances, etc.

Honestly, I think I actually did laugh out loud when I opened it!  I took this as a solid indicator that I’m paying down my line of credit at an aggressive rate, and CIBC has taken notice. Seems even funnier when CIBC just posted record earnings earlier this week.

As you probably assume, I’ve never paid the minimum on my line of credit this year, and I’m not sure I did previously. (Although previously I obviously didn’t have that extra money I was paying against it, because my debt only grew). I started the year with a balance owing over $13,000, now it just sits just north of $5,000. Not bad for a woman with ridiculous medical bills.

It was kind of the CIBC to give me this tool to “manage my finances”. I hope I won’t be taking advantage of their offer. At least that’s not in the plan.

If I were to re-write their letter, here’d be my (slightly sarcastic) take on it:

“Dear Middle Class Mom in Toronto,

In recognition that you’re paying down your line of credit faster than we anticipated, we’d like to tempt you with new interest only payments. We gave you access to $20,000 in hopes you’d rack it up and pay us the interest on that for many years to come. You played along for a while, and now something has changed.

With our new offer, you can pay us interest for the rest of your life. You’ll never pay off the principal, but that’s ok. Just use the money – it’s there for you to do the things that matter most to you. We’ll make it easy for you to be irresponsible with your money. Oh, it’s not really your money, it’s our money, but that’s just semantics.

By our calculations, you’ll cease to be paying us any interest at all in five or six months. Frankly, that worries us. Sure, we made a little more than $650 million this quarter, but we can’t sustain that kind of growth if we have more clients like you. ”

Hope you laughed out loud too. What else is a body to do on a Friday?  TGIF!


2 responses to this post.

  1. Love it 🙂


  2. Ya, you have them shaking in their boots, for sure! Don’t ya love it when you have the bigger advantage!?! Good for you for paying down that LOC – soon you’ll be able to say “good riddance” to paying any interest to them. I’m proud of you! BTW, I loved your version of the love letter! hee,hee


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