No Expiration Dates on New Prepaid Cards
New rules pertaining to prepaid credit cards took effect on May 1. Finance Minister Joe Oliver held a press conference on April 30 in Ottawa to introduce the new measures that were designed to protect Canadian consumers.
The Prepaid Payment Products Regulations prohibit expiration dates of the funds available on the card, and maintenance fees will not be allowed for at least one year after the card is activated. Information regarding applicable fees must now be prominently displayed on the packaging of the prepaid cards.
“As part of Canada’s Economic Action Plan, our Government committed to protecting consumers and saving Canadians money. These new regulations show we are taking action to support that commitment, helping to create jobs, growth and prosperity across Canada,” said Joe Oliver.
The Financial Consumer Agency of Canada (FCAC) is responsible for overseeing and enforcing compliance with these new regulations. The regulations will apply to all prepaid credit cards in the market on May 1, 2014, regardless of when the card was purchased.