Royal Bank of Canada, the country’s biggest bank, has grown its consumer lending business with the acquisition of Ally Credit Canada Ltd., an upstart that mocked big banks in its marketing campaigns.
The deal, which closed February 1, almost doubles the size of RBC’s commercial auto lending business. Ally Credit Canada was a unit of Ally Financial Inc., the former General Motors Acceptance Corporation (GMAC). Ally Credit Canadawhich itself was previously known as GMAC Canadaprovided financing to almost 600 car dealerships. Its consumer business had about 450,000 outstanding loans. Shortly after the deal closed, RBC told consumers that it would shut down Ally Credit Canada’s high-interest savings accounts at the end of April. The accounts offered high interest rates and no monthly fees or minimum balance.
