The federal government is considering new regulations for credit cards in Canada.
Among nine new proposed regulations is a requirement that credit card statements show cardholders how long it would take to pay off the balance if they only make the minimum payment. Another proposal is a 21-day grace period on new purchases made with credit cards during the month when a full payment is made at the end of that month.
Also being considered is a mandatory summary box on credit contracts and application forms that clearly outlines key information like interest rates and fees. The feds also want to prohibit credit companies from raising a person’s credit limit unless they have that person’s explicit permission.
The government is also proposing to bring in advance disclosure of interest rate increases prior to their taking effect, even if this information had been included in the credit contract.
“When Canadians don’t pay off their outstanding balance, we want to ensure they are treated fairly, that interest rates and penalties are clearly shown, and that companies use only appropriate debt collection practices,” said Finance Minister Jim Flaherty, in a statement released Thursday.
The proposed regulations do not seek to limit the interest rate that credit card companies can charge.
The regulations are posted at the Canada Gazette website at http://canadagazette.gc.ca/. It will take public submissions until June 13.
The federal and provincial governments are hoping to help about 10,100 Albertans get back to work.
The federal Conservatives will put $101 million into Alberta’s employment and training programs under an agreement signed May 22. It’s an effort to bring relief to those hit hardest by the economic downturn.
Alberta will use the new funding to support its existing programs and services that help people return to employment or improve their skills. Employment and Immigration Minister Hector Goudreau feels the funds line up well with the province’s existing work.
“We welcome the federal government’s efforts to work co-operatively in meeting the needs of Albertans during this economic slowdown,” he said in a press release.
The federal government made similar announcements Friday in Prince Edward Island, New Brunswick, Ontario, Saskatchewan and Manitoba. It already has agreements in place with Nova Scotia, Quebec and British Columbia.
