Conservative politicians in the Canadian parliament have given their backing to a motion tabled by the NDP, advocating a ban on the rising trend of expansion in pay–to–pay banking charges.
A spokesperson for the Government Whip John Duncan, officially confirmed that Conservative MPs would be supporting the new bill which proposes the adoption of a new financial code of conduct, which would offer greater protections to consumers.
Official Opposition party, the NDP, has led a campaign against the introduction of certain predatory practices in the consumer banking sector — large banks charging additional fees for the administration of basic transactions such as loans, mortgage payments, debit withdrawals and the issuing of paper bills.
Over the last couple of months, there has been a concerted and sustained policy by Canada’s banks to expand the suite of fees and charges they impose on customers.
Andrew Cash, NDP’s consumer protection critic, revealed that banks rake in approximately $180 million a year alone from customers that receive paper bank statements.
The paper fees have been the focus of particularly strong criticism, as they penalise and exploit vulnerable and disadvantaged groups such as older customers who may not be as technologically proficient, and those who may not be able to afford Internet access.
In 2014 the Canadian government barred telecommunication companies from charging their customers for paper bills, but decided to exempt banks from the same ban.
