New Rules for Prepaid Cards in Canada
Significant changes in prepaid cards are now taking place in Canada.
Canada’s Finance Minister, Jim Flaherty, announced today that issuers cannot impose expiration dates on prepaid cards in the future.
Fees have to be prominently displayed in an information box on the card’s package. The language describing the fees must be in clear and simple language. These prepaid cards cannot have dormancy fees or maintenance fees in the first year of the card’s activation. Fee increases cannot take place without disclosure to consumers.
The prepaid card market had come under scrutiny due to the hidden fees associated with these cards.
The Financial Consumer Agency of Canada will oversee the compliance with the regulations.