New measures to protect bank customers went into effect Thursday, after the federal government fulfilled a 2018 commitment to create a new framework to protect consumers of financial products and services.
In addition to more ethical selling practices, new regulations impose higher standards on banks and require them to take greater responsibility for the results their customers get.
Among these measures, banks must screen complaints from their customers within 56 days of receiving them, nationally first, and send electronic alerts to customers to prevent them from overdrafting or exceeding their credit limit.
In addition, financial institutions must provide customers with advance notice to renew or cancel their products and services and provide them with a separate agreement for each product or service.
According to the new procedures now in place, bankers’ remuneration should not affect their ability to comply with the new obligation of banks to offer and sell products and services that suit them to their customers.
Bank employees will also have the opportunity to report irregularities to the Financial Consumer Agency of Canada (FCAC), the federal agency responsible for overseeing banks.
Canada’s new financial consumer protection framework […] “It will help Canadians manage their money with greater confidence and peace of mind,” Finance Minister Chrystia Freeland said in a statement.
The new framework for protecting consumers of financial products and services […] Banks are giving more responsibility for the financial results their customers achieve,” FCAC Commissioner Judith Robertson added.