Starting April 30, TD is going to be charging their customers for having a line-of-credit not using them. I’ve always had a line-of-credit available to me so I can use it in an emergency. It’s nice to have an available credit line that uses reasonable rates – especially compared to credit cards.

While I’m no fan of the current government efforts to stimulate the economy – their complaints about banks tightening up credit to consumers seem very valid when you see tactics like this. What incentive do you have to have a credit line available to you? Instead you have to close the account to waive the fee, only to reapply for it when you need it – and in an emergency that could be very difficult to do.

Having been a big fan of TD Bank in the past, this makes me doubt I will keep all my accounts there. The true test will be if all the other banks follow them with the fee, leaving Canadian banking customers all out in the cold.