Deputy Prime Minister Chrystia Freeland announced several initiatives aiming to ensure Canadians are “treated fairly by their banks,” including the creation of an external complaints body for the country’s banking sector.
“For too long, banks have been able to choose who adjudicates complaints from Canadians,” Ms. Freeland said in Ottawa on Oct. 17. “Canadians have asked for and deserve better and with an independent, transparent, and not-for-profit ombudsperson, and that is what they will receive.”
Ms. Freeland told reporters that during a meeting with bank CEOs the previous week, she told them of her “firm expectation” that they would abide by Ottawa’s mortgage guidelines, as published by the Financial Consumer Agency of Canada (FCAC). She said they discussed “tailored mortgage relief,” for Canadians struggling to make monthly mortgage payments amid rising interest rates and inflation.
The FCAC, which enforces consumer protection legislation and regulations commitments by federally regulated financial entities, has guidelines that state financial institutions are required to provide support to consumers with variable and fixed-rate mortgages who are at risk.
“I want you to know that you are entitled to options and flexibility from your financial institution. Our government will be closely monitoring compliance with these mortgage rules in the coming weeks,” Ms. Freeland said.
The deputy prime minister also announced she had instructed the FCAC to focus on making no and low-cost bank accounts more readily available for Canadians, and would take steps to fight against the “unfair” charges banks make to Canadians, which she said can total up to $50 and disproportionally impact the most vulnerable.
Ms. Freeland said the Department of Finance would be looking at how much the fees can be reduced. She added that additional measures against unfair fees and fines would be included in the fall economic statement, in order to ensure “Canadians can count on always being treated fairly when dealing with their financial institution.”
The deputy prime minister also addressed the B.C. government’s newly introduced legislation to regulate its short-term rental market, which she called a “positive and important step in the right direction in an area of provincial jurisdiction.”
Ms. Freeland said that short-term rentals through companies like Airbnb can result in fewer homes for Canadians to live and rent in full-time. “That is why our government is actively examining what options and tools exist at the federal level to ensure more short-term rentals are made available as long-term rentals as permanent homes for Canadians to live in. We'll have more to announce on that in the weeks to come,” she said.
