The Toronto-Dominion Bank acquires the majority of the Citizen Bank of Canada's retail loans
August 05, 2009
On August 5, 2009, Vancouver City Savings Credit Union and Citizens Bank of Canada entered into an agreement to sell the majority of the Citizen Bank of Canada's retail loans to The Toronto-Dominion Bank.
Citizens Bank borrowers will see their mortgages and loans transferred to TD Canada Trust by early 2010. Meanwhile, deposit holders will be required to transfer out and close accounts with Citizens Bank over the next several months. B.C.-resident customers will have the option of transferring deposit accounts to Vancity Savings.
Vancouver City Savings Credit Union, headquartered in Vancouver, British Columbia, commonly referred to as Vancity, is a member-owned financial co-operative.
Citizens Bank is a virtual bank owned by Vancouver City Savings Credit Union. It has 30,000 customers and was launched in 1997 as one of the country’s first branchless banks, featuring higher interest rates and generally lower fees, as well as a strong social responsibility mandate. In the years since, other players have entered the branchless bank market, and most of the big banks today offer lower-cost online banking options.
McCarthy Tétrault LLP represented Vancouver City Savings Credit Union and Citizens Bank of Canada, as vendors, with a team led by Kareen Zimmer.