The federal Finance Department says it will be putting a cap on how much banks can charge in non-sufficient funds (NSF) fees, saying the charges “represent a source of financial hardship for consumers.”
NSF charges are incurred when there is not enough money in an individual’s bank account to cover a pre-authorized payment or cheque.
A Nov. 16 announcement says new regulations governing banks and NSF charges are coming as part of a commitment in Budget 2024.
“These fees disproportionately harm low-income Canadians and contribute to cycles of debt,” the announcement says.
The regulations will see a cap on NSF charges of $10. Currently, most banks charge between $45 and $48, according to the notice….