No more bank fees charged due to lack of funds

Canadians who find themselves inadvertently short of funds in their bank accounts for making an automated transaction or covering a check will not be penalized with fees.

Federal Finance Minister Chrystia Freeland unveiled a series of measures Tuesday to combat the bank fees Canadians have to deal with.

Among the new features announced, banks will no longer be able to charge fees for insufficient funds.

Currently, a bank can charge a fee of $45 to $50 when a check bounces or a previously authorized transaction is rejected due to lack of funds.

“These fees, which can currently be as high as $50, disproportionately impact 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,” the Finance Ministry denounced.^I Free land.

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 as little as $4 per month.

M^I Freeland also states that, in the midst of rising interest rates, she has asked banks to proactively contact mortgage customers who are at risk of defaulting on their mortgages.

“The Deputy Prime Minister has made it clear to the bank leaders that she will closely monitor their compliance,” the lady stressed.^I Free land.

Finally, all banks will be obliged, from 1 November 2024, to cooperate with the Ombudsman for Banking and Investments. This external organization is designated to serve as a reference point for Canadians who wish to file a complaint against their bank.

“For too long, banks have been able to choose who will resolve complaints from Canadians about their bank. The government has made clear that Canadians deserve an impartial advocate who will stand up for their interests.