Feds make changes to prepaid credit cards
Posted October 24, 2012 3:16 pm.
This article is more than 5 years old.
VANCOUVER (NEWS1130) – Many things have expiry dates — milk, medicine, car insurance — but should prepaid credit cards be on that list too?
New rules introduced this morning in Ottawa will bring much needed reform to what has become a much criticized sector of the lending industry.
“Conditions of usage on how to access the funds will be provided in clear, simple and unambiguous language,” says Finance Minister Jim Flaherty. “Under these regulations, funds in general cannot expire.”
These changes are good news for you the consumer and experts say they can be good for the credit card companies too.
“It may even make these credit card products get adopted a little more quickly if consumers see that there are safeguards in position,” says SFU Marketing Professor Lindsay Meredith.
Flaherty also urges Canadians to learn more about what is going on with the financial services they use.
