On February 13, 2013, the Financial Consumer Agency of Canada (FCAC) published new guidelines for credit and debit service providers. These new guidelines address issues raised by CFIB since the FCAC published the industry’s Code of conduct in 2010.
One of the biggest complaints concerned providers who offered big savings to sign a contract and then added extra costs after the contract was locked in.
The new guidelines address this and several other inappropriate sales practices, including:
- Changing fees with insufficient notice
- Hidden terms and additional services
- Confusing language and service information
Starting November 12, 2013, payment card providers must make contract terms and conditions clear and easy to understand. Merchants will also be able to cancel contracts without penalty. Please note that the new measures are not retroactive.