Financial Consumer Agency of Canada
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Financial Consumer Agency of Canada

www.fcac-acfc.gc.ca

 

Frequently Asked Questions

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FILE UPDATED TIME 12/05/2011 2:08:19 PM
TOTAL READ COUNT 1619

Question:

I never used to pay any service fees, so why are they now being charged on my account?

Answer:

There are a number of reasons why the service fees you have to pay on your account could change from one month to the next. Here are some questions you can ask that might help you understand why you now have to pay service fees:

  • Did the number of transactions you made go over the limit that is allowed by your service package?
  • If your service package waives your monthly fees when you maintain a minimum monthly balance, did you maintain that balance at all times during the month? (Even if your balance drops below the minimum balance required for only one day, you may be charged the full monthly fee and/or a transaction fee for every transaction you make.)
  • Were you charged for transactions or services that aren't covered by your banking package; for example, NSF (non-sufficient funds) cheques or overdraft protection?
  • Did your institution increase the minimum balance you have to maintain in your account, for your fees to be waived?
  • Did your institution reduce the number of transactions you're allowed with your service package?

If you need help, talk to the staff at your local branch. They should be able to answer your questions.

Although financial institutions are allowed to make adjustments or changes to their fee structure, the Bank Act and the Trust and Loans Companies Act require banks and trust and loan companies to advise their customers, ahead of time, of any increases to existing fees or new fees. If you didn't receive proper notification, you should make use of your financial institution's complaint-handling process and contact FCAC. We can investigate to determine whether your financial institution has complied with its legal obligations.

Federal financial consumer protection legislation requires all federally regulated financial institutions to have a complaint-handling process in place to help resolve disputes between consumers and their financial institutions. This process includes a third-party dispute-resolution body.

FCAC publishes the complaint-handling process for all federally regulated financial institutions on its Web site. To find the complaint-handling process for your financial institution, click here . If you are having difficulty finding this information, call our Consumer Contact Centre at 1-866-461-3222 (toll-free).

Financial institutions are also required to make available to their clients a list of all the service charges that apply, such as fees for non-sufficient funds (NSF) cheques. Ask for a copy of this list. A number of single-fee packages are also available, including low-fee accounts, which provide a limited number of basic banking services. In its publication The Cost of Banking Guide, FCAC provides consumers with detailed, up-to-date information on various banking packages offered by all of the major banks and credit unions across Canada. To help reduce your banking costs, check out the Cost of Banking Guide.

Resource(s):

Classification of this FAQ:

Category Sub-category
Accounts Fees

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Date Modified:
2013-01-03