A recently announced government overhaul of consumer banking resolutions should help consumers better manage their financial planning situations.
The new regulations, proposed by Finance Canada, would reduce the cheque-hold time for consumers and small businesses from seven days to four for smaller cheques. Immediate access will also be available to the first $100 of a cheque.
Another new regulation would stop so-called negative option billing – in which people are automatically charged for a specific service unless they opt out beforehand. Financial firms would need consent before starting any new service.
“The economy remains our government’s top priority,” said Ted Menzies, Minister of State. “We’re protecting Canadian consumers by banning negative option billing for financial products, ensuring greater transparency and making sure consumers have timelier access to their own hard-earned money.”
Economist Jack Mintz told CTV that the new rules should be helpful for consumers that use the banks. However, he cautioned that credit card interest and household spending may play a much larger part in the current financial planning situations for many families.
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