Canadian Senator to Investigate Credit Card Interest Rates
source: http://www.cbc.ca/consumer/story/2009/01/21/senator-banks.html
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A Liberal Senator from New Brunswick says she will ask the Senate standing committee on banking to investigate credit card interest rates and other fees being charged by banks.
Pierrette Ringuette says Canadians across the country are fed up with high interest rates and bank fees and it's time the government did something about it.
For example, Connie Conrad of Moose Jaw, Sask., recently received a letter from TD Canada Trust advising her that while her credit rating was good, should her credit card account fall into arrears the bank could decide to raise the interest rate it charges on her card by five per cent.
"I was really shocked," Conrad told CBC News, adding she's never been in arrears on her credit card, which she's had for nearly 30 years.
"I really question is it morally and ethically right for them to do that? Particularly in light of the economic climate we are experiencing right now," she said.
Ringuette, who sits on the Senate's standing committee on banking, trade and commerce, said her office has been inundated with calls, letters and emails from Canadians complaining about rising interest rates and fees on credit cards.
"There is a dire need for the Senate committee to look into this issue," she said.
The federal government has already offered banks help to ease them through the credit crunch.
With the key overnight lending rate at historic lows, Ringuette wants to know why consumers are being threatened with higher fees and interest rates.
Ringuette said she'll be asking the Senate banking committee to consider placing limits on what banks can charge, similar to caps currently under consideration in the United States.
"I'm sorry, but if that's the way they want to play the game, maybe it's time that we enforce stricter regulation," she said.
CBC News was unable to speak to anyone from the Canadian Bankers Association. A request for an interview was declined.
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goughhollow
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I have had many problems with credit cards charging high interest for various reasons. They can ruin your credit and often times you are completely innocent. They will say you asked for a particular product or insurance over and above what you are already paying for on your card. Soon your card is over the limit and then they charge you a fee for being over your limit plus your interest charges and soon you have a problem making your basic payment let alone paying the balance owing off. The various people working for the credit card companies offer products but even if you knowingly did not ask for this particular product, you may find it was added to your card anyway and monthly charges are coming out. When you ask to have it removed; they say you have to fax a letter saying you don't want this product. You have to keep checking to see if they did what they said they would do. It's very frustrating because you don't have the time to deal with these mistakes. It's sad we have to use credit cards in the first place. I remember in the 80's you could still get Demand loans which were loans below $1000 dollars and you paid them off quickly and when you needed money they were easy to get. Then, all of a sudden the banks refused to give out small loans and they told you, you had to get a credit card. May I ask who started this awful practice anyway the people or the banks?
- 2 years ago
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goughhollow
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