OTTAWA, ON. (NEWS1130) – Federal Finance Minister Jim Flaherty is set to announce prepaid credit card companies can no longer impose expiry dates on their products.
It’s Ottawa’s way of taking measures to govern credit and debit transactions that had not been applied to the new prepaid market before.
SFU Marketing Professor Lindsay Meredith says this is good news for people who use prepaid plastic, young adults, and for parents trying to introduce their kids to credit.
“Remember, when you’re talking to a young population that has very little experience with financial instruments; these kids are going to be pretty vulnerable,” he explains.
He adds the move could give the industry a boost, but the companies themselves won’t like it. “It may even make these credit card products adopt a little more quickly if consumers see there are safeguards in position.”
The sector has faced criticism for high hidden fees that reduced their face value and fooled customers. These can include monthly or annual fees, maintenance costs, as well as ATM charges.
New prepaid credit card regulations coming
Finance Minister to set new rules today
News1130 Staff/The Canadian Press
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