After rumors circulated yesterday on social media, there are further reports that the Bank of Montreal (TSX: BMO) is exiting the retail auto finance business. A letter that was sent to an auto dealer related to a dealer agreement has been leaked to social media, indicating that the major Canadian bank is exiting the segment.
The letter, assigned to “Dealer Principal,” is dated September 15, and outlines that the dealer agreement that was previously in place would be terminated as of today following a “strategic decision to exit the retail auto finance business.”
The bank indicated that it would fund all contracts submitted and approved before September 15, and that approvals remain valid for a period of 90 days. Existing retail auto finance customers are to receive the same level of support as they were prior to decision to exit the segment, for the duration of the loan agreement.
The report follows a since-deleted thread that was posted to Reddit, with an individual last night stating that they had been laid off by BMO Auto Finance following the decision to shut down the division by the bank.
Bank of Montreal has yet to formally announce the closure of the division.
Information for this briefing was found via Twitter, Reddit, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
