I’ve been a long-time customer of Bank of Montreal and recently had a frustrating experience with their credit card management practices.
Despite actively paying down a significant balance and not missing payments, my credit limit was reduced due to “low usage.” Shortly after, I received only a letter that the account would be closed altogether. This feels counterintuitive and discouraging for customers who are trying to responsibly manage and reduce debt rather than continually use available credit.
Lowering limits while balances remain high can negatively impact credit utilization ratios, which in turn can affect credit scores. For customers working to improve their financial situation, this approach seems punitive rather than supportive.
I understand that financial institutions manage risk, but clearer communication and consideration for long-standing customers would go a long way. After many years of banking history, I expected a more balanced and customer-conscious approach.
I hope BMO reconsiders how it handles low-activity accounts, particularly when customers are actively working to reduce debt.
I will not be using this bank for any product now or in the future. Extremely disappointing experience.
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