New Canadian Credit Card Rules In Canada Effective Sept. 1,2010

Sept. 3, 2010 - PRLog -- It will also protect consumers from unexpected costs and help them make better options.Canada’s new credit card regulations took effect Wednesday, Sept. 1.

"This is good news for Canadian Professional Real Estate investors " says Navtaj Chandhoke, founder of Professional Real Estate investors Group (PREIG) Canada. " Canadian Real Estate investors can use credit card more in their favourknow the new rules."

The rules required that credit card companies give cardholders a minimum 21-day interest-free grace period on all new card purchases if the customers pay the outstanding balance in full.


The new rules also provide that when a cardholder’s payments is over the required minimum, the excess must be allocated first to the balance with the higher interest rate or distributed proportionally to each type of balance.

Credit card companies are also required to inform members on their monthly statement the period it would take to fully repay their balance if the cardholder would make minimum payments only each month.

The rules also require credit card firms to disclose interest rate increases before they take effect, even if the information is part of the company’s credit contract. The regulations apply to all credit cards issued by Ottawa-regulated institutions.

There are, however, fears that the stringent regulations may result in higher interest rates like what happened to U.S. credit card holders.According to reports, after the U.S. implemented the U.S. Credit Card Accountability Responsibility and Disclosure Act last week, credit card firms in the United States hiked their interest rate to their highest levels in nine years.

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