2006-05-03|BMO Commercial Loan Application

Vice Chairman, Personal and Commercial Client Group

• I made an application for a Small Business Line of Credit (SBLOC) on 2006-01-05. The BMO website states that the process takes 48 hours to reach a decision. Since I have had a Business Chequing account with the Bank of Montreal since 1989-01-10 (17 years ago), I felt very comfortable dealing with the BMO Financial Group.

• On 2006-01-09, a banking officer from BMO contacted me for further information. I faithfully sent him an E-mail message on 2006-01-12 with a PDF file (personal balance sheets, corporate financial statements, transaction details, etc.). I also sent him a FAX on 2006-01-13 the audit results by Canada Revenue Agency (CRA).

• I kept inquiring about the status of the application for the Line of Credit with daily telephone calls to the banking officer, also answering many questions that he had about the nature of the business. Finally on 2006-01-27, I was told that my application was DENIED. The promised action was 48 hours, but the decision was made after 22 days (more than 3 weeks) from the application date!

• The requested amount for the Line of Credit was only $30K USD = ~$40K CAD. I have personal assets in excess of $300K CAD, plus a mortgage-free house which would be probably worth $200K CAD. I told the banking officer that the house could be considered as security for the Line of Credit.

• The banking officer was VERY HELPFUL throughout my ordeal. In fact, he strongly supported my application for the Line of Credit, and he even apologised to me when the Credit Department denied my application. His reaction was: "This makes no sense!" I was absolutely shocked by the denial, after 22 days instead of 2 days that had been promised, and I went into severe depression. I ended up cashing my personal RRSP because of the tight deadline imposed by the marketing company in Florida, U.S.A.

• Help me, God!

• Thank you very much for your attention.

Ombudsman, BMO Financial Group

• I acknowledge the letter from the Ombudsman's office dated 2006-05-09, inviting me to contact you if all areas of appeal within the bank have been exhausted and a clear explanation or resolution is not evident.

• This is to inform you that in response to my letters to Vice Chairman and to President and Chief Executive Officer, Personal and Commercial Client Group, I received a clear explanation from BMO Direct Banking for Business dated 2006-05-11, as follows.

  Your file indicates that the possibility of a personal line of credit secured by your residence was offered to you ; however, you declined this proposition.

• BMO Bank of Montreal indeed offered me 2 options, a Business Line of Credit (USD) and a Personal Line of Credit (CAD). The statement above indicates that I made a wrong decision by choosing the Business Line of Credit. It means that if I had chosen the other option and my application had been denied, BMO Bank of Montreal would have indicated that I made a wrong decision by choosing the Personal Line of Credit.

• This kind of "Heads I Win, Tails I Win" logic is completely unacceptable!!!

• I would appreciate the Ombudsman's resolution.

• Thank you very much for your attention.

Ombudsman for Banking Services and Investments (OBSI)

• I have completed Step 1 and Step 2 of the Complaint Process on OBSI's website.

• [Step 1]

• I was extremely offended by BMO Personal and Commercial Client Group Vice Chairman's statement:

  Your file indicates that the possibility of a personal line of credit secured by your residence was offered to you ; however, you declined this proposition.

  when I had made A SIMPLE CHOICE between the Business Line of Credit and the Personal Line of Credit. I chose the Business Line of Credit mainly because my financial need was in USD.

• [Step 2]

• I was extremely insulted by BMO Financial Group Ombudsman's statement:

  You seemed to assume that if you had chosen a personal line of credit you would have also been declined.

  when I had made ABSOLUTELY NO ASSUMPTION that if I had chosen a Personal Line of Credit I would have also been declined. It was A SIMPLE CHOICE between the Business Line of Credit and the Personal Line of Credit.

• [Step 3]

• I am hereby escalating my complaint to the Ombudsman for Banking Services and Investments (OBSI). Please investigate BMO's behaviour, especially their arrogant attitude and unacceptable ethics with "Heads I Win, Tails I Win" logic!

• Thank you very much for your attention.

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