Recent Bank Act Changes To Be Aware Of

Recent Bank Act Changes To Be Aware Of

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By Bromwich+Smith Staff | 679 words | Reading Time: 3 minutes and 23 seconds | Date: 2022/07/08

You may not know that the government of Canada most recently updated your protection when dealing with banks. This is intended to ensure that under current federal laws and regulations that banks comply with consumer protections. Thereby, safeguarding and protecting our rights to be treated fairly when dealing with banks. 

These financial rights include:

  • The ability to open a personal account at any bank with proper identification.
  • You can cash a Government of Canada cheque for free at any bank with proper identification.
  • You will receive clear and simple information that’s not misleading about products and services.
  • You can get products and services for which you’ve provided express consent.
  • You can have your issues resolved through a bank’s complaint-handling process.

New and enhanced protections for bank customers

As of June 30, 2022, further enhanced protections when dealing with your bank will be:

  • additional and timely information to help you with decision-making, such as: 
    • new electronic alerts 
    • advance notice when it’s time to renew products and services
    • separate agreements for optional products and services
  • higher standards for bank sales practices, such as:
    • offering or selling products and services that are appropriate for your financial needs 
    • getting your express consent for all products and services
    • broader protections against providing false or misleading information
    • broader protections against taking advantage or applying undue pressure
  • resolving customer issues:
    • more effective and timely complaints handling
    • requirement to provide refunds and credits (redress) 
  • increased limit for cashing a Government of Canada cheque 
  • whistleblowing program for bank employees

All of this has come about because the Government of Canada adopted legislation to modernize the Financial Consumer Protection Framework within the Bank Act in 2018. The Framework addresses issues raised by FCAC in its reviews of banks. The reviews highlighted key areas where consumers of bank products and services could be better protected, and where the oversight of banks could be strengthened.

What else you should know

Having the knowledge of how you are protected by these new changes when dealing with banks in Canada is a great step in understanding and managing your finances. However, you may be experiencing debt and in this case there are many companies that will tell you they can help you with your debt.  We don’t want you to be fooled by those that state they can help you with your debt, as they do not have the legislation to provide options through a Licensed Insolvency Trustee.  Since, Licensed Insolvency Trustees are legislated you can work directly with a Licensed Insolvency Trustee and not pay any fee to a debt consultant saving yourself as much as $5000 in fees.                             

Legislated Consumer Proposal

Only Licensed Insolvency Trustees such as Bromwich+Smith can provide this option to you. This is how a consumer proposal can help you if you are struggling with debt:

  • Stay of proceedings meaning creditors cannot sue you whilst in a consumer proposal
  • Fees of $1500 spread over the lifetime of the proposal
  • All creditors must stop interest
  • Proposal can last 5 years but you can pay it off sooner if your circumstances change and you will have a R7 rating for three years after you complete the proposal
  • Assets cannot outweigh the amount being proposed to the creditor except in the case of RSPs in which any contribution made a year prior and beyond the filing of a consumer proposal can be kept
  • Budgeting and money management counseling tools
  • Administered by a licensed insolvency trustee appointed by the government of Canada.

We hope this knowledge empowers you to understand your bank institutions and the support you can receive if you are managing debt. We also want you to know you are not alone. If you are facing overwhelming debt, Bromwich+Smith has a number of debt relief strategies to help you regain control of your finances and get your life back on track. Reach out today for a free, confidential, no obligation consultation. Bromwich+Smith’s Debt Relief Specialists are available by phone at 1.855.884.9243, or request a call back at contact us page. We want to see you flourish!

 

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