New rules that will cap NSF fees take effect today.
Under these new regulations, federally regulated banks will only be permitted to charge $10 for non-sufficient fund fees.
This new measure will help all consumers, especially those struggling financially.
The Financial Consumer Agency of Canada will oversee the new requirements to ensure industry compliance.
“The new NSF fee regulations represent an important step forward in consumer protection. These fees disproportionately affect Canadians who are already struggling financially. The restrictions on NSF fees will bring down the costs of banking for many Canadians. FCAC will oversee compliance with the new NSF fee requirements, making sure that the rights and interests of financial consumers are protected,” said Shereen Benzvy Miller, Commissioner, Financial Consumer Agency of Canada.
Previous fees ranged from $45 to $50, or even higher.
According to the FCAC, under the new regulations, federally regulated banks or credit unions cannot charge you:
- more than $10 in NSF fees when your account doesn’t have enough money for a payment
- NSF fees more than once per account in a period of 2 business days
- NSF fees when the amount of your overdraft is less than $10
This only applies to personal deposit accounts. It doesn’t apply to business accounts.
