New rules on prepaid cards come into effect
Article from CTV News:
New regulations on the fees associated with prepaid cards have come into effect in Canada.
Prepaid debit cards, which can be used as an alternative to cash, allow users to make purchases or withdraw money from a pre-set amount that has already been loaded onto the card. Prepaid cards are offered by a number of financial institutions, credit card companies and retailers.
Many of the cards come with several fees and charges, including monthly maintenance fees, activation fees and charges for withdrawing money from an ATM.
Finance Minister Joe Oliver highlighted the new rules for issuers of prepaid cards during a news conference Wednesday afternoon.
They include:
- a ban on maintenance fees for the card for at least one year after the card is activated
- a ban on assigning an expiry date to prepaid cards
- a requirement that federally regulated financial institutions disclose a list of all the fees associated with the card in an information box that is printed in a visible location on the card’s packaging
- a requirement that all other key information be given to the consumer before the card is issued in a manner that…………………continues on CTV News
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