Non-sufficient funds fees are now being limited to $10 under new rules
Global News
The changes were announced by Ottawa last year and kicked in on Thursday, also prohibit banks from charging more than one NSF fee in two business days for the same deposit account.
New rules are now in effect limiting the amount that banks can charge customers who don’t have enough money in their accounts to cover a cheque or other pre-authorized charge.
Canada’s new cap on non-sufficient funds fees is set at $10 for personal deposit accounts.
The changes, announced by Ottawa last year and which kicked in on Thursday, also prohibit banks from charging more than one NSF fee in a period of two business days for the same deposit account, and ban charging an NSF fee when an account shortfall is under $10.
The federal government has said that until now, NSF fees could be as high as $50.
Advocates have said the charge disproportionately affected low-income Canadians and people with poor credit history.
The new cap is expected to save Canadians more than $600 million annually.
ACORN Canada, a national organization for low- and moderate-income families, celebrated the new rules, calling it a “major win” for its members “who have long been gouged by fees.”
“These changes will directly benefit millions of Canadians — especially renters, single parents, gig workers, and people living paycheque to paycheque — by preventing fees from spiralling into deeper financial hardship,” the organization said in a news release.
