No more bank charges due to lack of funds

Canadians who involuntarily find they don’t have enough funds in their bank account to make an automatic transaction or cover a check will no longer be penalized with a fee.

Federal Finance Minister Chrystia Freeland unveiled a series of measures Tuesday to combat the banking fees Canadians face.

Among the new features announced, banks can no longer charge fees for insufficient funds.

Currently, a bank may charge a fee of $45 to $50 when a check bounces or declines a pre-authorized transaction due to insufficient funds.

“These fees, which can currently be as high as $50, disproportionately affect the financial well-being of Canadians who pay check to paycheck or are not protected from overdrafts when they have to pay their bills,” the Ministry of M condemned.^me free land

Low cost services

Earlier this month, the minister spoke to heads of several major banks. She noted that some firms have already committed to offering low-fee bank account options with administration fees no higher than $4 a month.

M^me Amid rising interest rates, Freeland recalled that she urged banks to proactively contact their mortgage clients who were at risk of defaulting on their mortgages.

“The Deputy Prime Minister has clearly indicated to the bank leaders that he will scrutinize their compliance,” underlined Smt.^me free land

Finally, all banks will be obliged to cooperate with the Ombudsman for Banking Services and Investments from November 1, 2024. This external body was appointed to serve as a point of reference for Canadians who wish to complain about their bank.

“For too long, banks have been able to choose who handles complaints filed by Canadians about their bank. “Canadians deserve an impartial defender to protect their interests,” the government explained.