New measures to protect bank customers came into force on Thursday, following the fulfillment of a 2018 commitment by the federal government to put in place a new framework to protect consumers of financial products and services.
In addition to more ethical sales practices, the new regulations impose higher standards on banks and require them to take greater responsibility for the results obtained by their customers.
Among these measures, the banks must examine complaints from their customers within 56 days of their receipt, a national first, and send electronic alerts to customers to prevent them from being overdrawn or exceeding their credit limit.
In addition, financial institutions must provide advance notice to customers for the renewal or cancellation of their products and services and provide them with a separate agreement for each product or service.
According to the new measures now in force, the remuneration of bankers must not affect their ability to comply with the new obligation of banks to offer and sell to their customers products and services that suit them.
Bank employees will also have the opportunity to report wrongdoing to the Financial Consumer Agency of Canada (FCAC), a federal agency responsible for supervising banks.
“Canada’s New Financial Consumer Protection Framework […] will help Canadians manage their money with greater confidence and peace of mind,” Finance Minister Chrystia Freeland said in a statement.
“The new framework for the protection of consumers of financial products and services […] gives banks greater responsibility for the financial results achieved by their customers,” added FCAC Commissioner Judith Robertson.
