Do you know where your money is? Well, you may not be able to account for the whereabouts of all of it, but you should soon be able to figure out how to keep more of it! Your government and newly elected math tutor and debt ‘babysitter’ hopes so by virtue of some new rules and regulations regarding you, your bank, and your balance owing.
In late 2010 – under the ever-widening umbrella of their “Economic Action Plan” – the Canadian Government, “…is taking action to limit business practices that are not beneficial to consumers, and require the provision of clear and timely information to Canadians about credit cards.”
To be both concise and specific, there are a handful of changes being made to all credit card related paper(s) that come into contact with the Canadian consumer. These changes include: a “summary box” that lays plain your interest rates & fees, a calculation of the time it will take to repay your balance if only making minimum monthly payments, as well as advanced disclosure of interest rate increases to the consumer and consent for credit limit increases.
In addition to the above-mentioned changes, there will also be a 21-day grace period on all new credit card purchases, but only if the consumer pays the balance in full. To simplify, here is the Government’s very own example:
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