Credit Card Fairness Act

January 30, 2019



Ottawa, ON – Rachael Harder, Conservative Shadow Minister for the Status of Women and Member of Parliament for Lethbridge, issued a statement following debate of her Private Member’s Bill C-419 in the House of Commons yesterday:


“Conservatives remain focused on creating opportunity to help Canadians get ahead. That’s why I introduced the Credit Card Fairness Act, which calls for seven measures that will empower Canadians to make informed decisions, pay off debt faster, and achieve greater financial freedom.


“Conservatives know that an extra $100 a month on groceries or an electricity bill matter when families have household budgets to meet. That’s why we’re committed to putting policy in place, like the Credit Card Fairness Act, which will ensure better credit card protection for Canadians, providing the transparency they require to make informed decisions with regard to their spending.


“The reality though is that Justin Trudeau is only making life more expensive for Canadians by imposing new taxes, such as his Carbon Tax. Unfortunately, at the end of the month, nearly half of all Canadians are within $200 of not being able to pay off their basic bills. Conservatives have been hearing over and over again from Canadians that life is getting more expensive and many who are working hard and playing by the rules feel like it’s impossible to get ahead.


“If passed, the Credit Card Fairness Act will ensure that:


  • Banks cannot charge interest on the amount paid on or before the due date if a cardholder pays more than 95% of the outstanding balance before the payment due date. Banks can only charge interest on the amount outstanding after the due date.


  • Payments made by the credit card holder are applied to balances with the highest interest rate first, before being applied to balances at a lower interest rate.


  • Banks are required to disclose on the monthly statement how much interest the cardholder has paid in the previous 12 months.


  • Marketing materials must prominently communicate the annual fee, annual interest rate and the period of time until the introductory rate ends, along with the interest rates that will apply following that period.


  • Banks are prohibited from increasing interest rates retroactively on the cardholder’s outstanding balance owing.


  • Banks provide an on-line mechanism for consumers to cancel their credit cards and/or decrease their credit limit (right now, a cardholder must phone or visit the bank in person).


  • Banks must obtain consent before increasing a cardholder’s credit limit.


“Andrew Scheer and the Conservatives remain focused on helping Canadians get ahead by supporting families who want fairness and transparency to make informed financial decisions.”