NOTICE REGARDING CHANGES TO YOUR BMO CREDIT CARD ACCOUNT

The updated agreement will become effective on May 3, 2024.

1) New definitions such as, “installment plan”, “installment plan interest”, “installment plan monthly fee”, “installment plan total monthly payment”, “new installments”, “total balance” and “total installments not yet due” have been added:

Installment plan means the defined repayment of a balance over a set duration of monthly payments. Your balance owed is moved from your account’s purchase category to the installment plan. You may have several installment plans active at the same time.

Installment plan interest means the interest we charge each month for each installment plan. Installment plan monthly fee means the fee we charge each month for each installment plan.    

Installment plan total monthly payment means the amount you must repay each month if you have an installment plan and is made up of the monthly principal amount(s) plus installment plan monthly fee(s) or interest due that statement. This amount will be added to the minimum payment due on your monthly account statement for the duration of the plan.

New installments mean the amount shown on your monthly statement as new installments and is the amount that you have put on an installment plan during that statement cycle.

Total balance means the amount shown on your account statement as the total account balance, which is the balance you owe as of the statement date plus any installment plan payments not yet due.

Total installments not yet due means the installment plan(s) monthly principal amount to be paid in future payments. 

2) The definition for “new balance” has been re-named “balance due” and amended to the following:

Balance Due means the amount shown on your account statement as the balance due, which is the balance you owe as of the statement date. Your balance due does not include any installment plan payments not yet due.

3) Section 4.2 will be amended as follows (new language is in italics):

The Customer may pay the total balance in full at any time; however, they must make sure that we receive at least their minimum payment on or before the payment due date shown on their account statement. To calculate the minimum payment, we add $10 to the amount of interest and fees (excluding installment plan interest and fees) shown on the Account Statement plus any total monthly installment plan payments. In addition to that amount, we also add to the minimum payment the larger of:

• any amount past due on the Account Statement; or
• the amount by which the total balance shown on the Account Statement exceeds the Credit Limit. If the balance due is $10 or less, the Customer must pay the full amount.

4) Section 4.3 will be amended as follows (new language is in italics):

Interest shall be charged on the amount of all Purchases, Cash Advances, service charges and fees from the date of the Transaction until payment is received. If you choose to create an installment plan, interest, if applicable, will be charged on that installment plan at the interest rate you agreed to in the relevant terms and conditions. We don’t charge interest on purchases, installment plans and fees appearing on your account statement for the first time if you pay your balance due in full (or the total balance for customers with interest-bearing installment plans) within the grace period set out in your card carrier or in any notice we provide to you. Otherwise, interest charges on those purchases, installment plans and fees will appear on your next monthly statement. We will charge interest retroactively from the date of the purchase, installment plan conversion (for customers with interest-bearing installment plans) or fee until the date we receive payment in full. The Customer must pay interest on all Cash Advances.

5) Section 4.4 will be amended as follows (new language is in italics):

Interest will be charged at an annual interest rate that is either (a) shown on the Card Carrier (b) provided to you as part of an installment plan; or (c) equal to our Prime Rate (the annual interest rate announced by us from time to time as its prime interest rate for Canadian dollar loans) plus the margin shown on the Card Carrier. If clauses (a) or (b) apply, we may change the interest rate from time to time and provide the Customer with notice of the change. If clause (c) applies, the interest rate will change automatically upon a change to the Prime Rate, and we may change the margin and provide the Customer with notice of the change. Interest is calculated on a daily basis by multiplying each daily interest-bearing balance of Charges by a daily rate of interest equal to the interest rate divided by the actual number of days in the year. The Account Statement will show the total amount of interest for the Billing Period.

6) Section 14.1 will be updated to reflect how the agreement can be terminated (new language is in italics):

We or the Customer may immediately terminate this Agreement without notice, in the event of the bankruptcy or insolvency of the other party or if the other party fails to make any payment when due under this Agreement or if the other party is in default in the performance of any of its other obligations.