Non-sufficient funds fee will be limited to $10 in Canada starting next year
Non-sufficient funds fee will be limited to $10 in Canada starting next year
21 comments
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Good! I remember threatening to cancel my bank accounts last time they tried to charge me the NSF fee (which worked). I was fresh out of Europe and thought that was the most ludicrous thing. Payment couldn't go through, i.e. you literally did nothing and it cost $50 or whatever? That was over a decade ago and still mad about it. A shame it's still $10 but it's at least a manageable amount for most people.
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This is huge. It seems criminal for banks to charge you up to $50 when you may not even have that in your account.
34% of Canadians getting slapped with one of these fees in 2023 is bonkers. That's like $50 million in fees taken from the people who are least able to afford it.
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Having had a bank account in Europe for nearly 20 years, I never paid a dime for not having enough money in the account. The transaction just fails.
I'm so confused.
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I wish we had that.
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"A cap of $10 was chosen to balance the need to protect consumers from high fees with the need to maintain the integrity of the payments system by incentivizing consumers to honour their payments," the department wrote.
Nonsense, just cancel the transaction then.
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Don't worry, they usually do, they just give you privilege of paying anyways.
Having worked in banking I can tell you it's a fee that is charged purely to punish people with limited cashflow. EQ bank is the only one I know of that doesn't have them.
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Should have gone the Québec route and removed NSF charges.
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Quebec is often ahead of Canada as they also have election spending capped at $100 per year.
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I like both of these ideas.
I'm reminded of a radio interview with, I believe, an RBC rep a couple decades ago. They were asked about their various fees and why they kept them as they were so unpopular with their customers. The response was along the lines of, "Well, it's only a small part of our revenue." I was sort of thinking, "What, so you can't think of a reason, either?!"
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That's amazing! I remember being broke and being hit by NSF. It was downright devastating. $40 or $50 is a lot when you have no money.
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Can anyone explain what risk or labour is involved in an NSF incident and how that's even worth $10?
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It’s 100% automatic and electronically based. The marginal cost of processing any NSF is quite literally $0. Even at $10, it’s 100% profit to the banks.
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Finally it’s about time we stop the big banks from screwing everyone over.
21 comments