2023-10-17 22:46:56
Canadians who find themselves unwillingly lacking funds in their bank account to make an automated transaction or cover a check will no longer be penalized with fees.
Federal Finance Minister Chrystia Freeland unveiled a series of measures on Tuesday to combat the banking fees that Canadians have to deal with.
Among the new features announced, banks will no longer be able to impose fees for insufficient funds.
Currently, a bank could impose fees ranging from $45 to $50 when a check bounces or a pre-authorized transaction is declined due to lack of funds.
“These fees, which can currently amount to $50, disproportionately affect the financial well-being of Canadians who live paycheck to paycheck or who are not protected against overdrafts when they have to pay their bills,” denounced Ms. Freeland’s ministry.
Less expensive services
The minister spoke with the heads of several major banks earlier this month. She noted that some institutions have already committed to offering more low-fee bank account options, with administration fees no more than $4 per month.
Ms. Freeland also recalled that she asked, in the midst of soaring interest rates, banks to proactively contact their mortgage customers who are in danger of defaulting on their mortgages.
“The Deputy Prime Minister has made it clear to bank executives that she will closely monitor bank compliance,” Freeland’s office said.
Finally, all banks will be obliged, from November 1, 2024, to collaborate with the Ombudsman for Banking Services and Investments. This external organization was designated to serve as a point of reference for Canadians who want to file a complaint against their bank.
“For too long, banks have been able to choose who will resolve complaints filed by Canadians about their bank. Canadians deserve an impartial defender who will defend their interests,” explained the government.
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