New regulations come into force today capping at $10 the non-sufficient fund (NSF) fees federally regulated banks charge Canadians. This new measure will help all consumers, especially those who are financially vulnerable.
FCAC will oversee industry compliance with the new NSF fee requirements, which include the following consumer protections:
- consumers cannot be charged more than $10 in NSF fees when they do not have enough money in their personal deposit account to cover a payment
- consumers will not be charged an NSF fee more than once in a period of 2 business days for the same personal deposit account
- consumers will not be charged NSF fees on a personal deposit account when the amount of their overdraft on that account is less than $10
FCAC has information for consumers on Canada.ca explaining their rights regarding NSF fees.
“Even if someone is just $5 short when paying a bill or covering a cheque, they can be hit with a non-sufficient funds fee as high as $50. That’s money that could otherwise go toward groceries, medicine, or other everyday essentials. And this isn’t uncommon–more than one in three Canadians are affected by these fees. By capping NSF fees at $10 and strengthening consumer protections, we’re helping Canadians keep more of their hard-earned money while making everyday banking fairer and more affordable.”
The Honourable François-Philippe Champagne, Minister of Finance and National Revenue
