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Information that institutions must give you
From borrowing costs to complaint procedures, financial institutions
are required to give you certain information about their products,
services and policies. Make sure you have that information and any
other facts you need before making a financial decision.
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Accounts and service charges
When you open a deposit account, a financial institution must provide
you with the following information in writing (either at or before
the time the account is opened):
- A copy of the account agreement
- For an account that pays interest, the rate of interest on the
account and how it will be calculated (this rule doesn't apply
to an account opened with a balance in excess of $150,000)
- All charges applicable to the account
- How you will be notified of any increase in those charges and
of any new charges to the account
- The institution's procedures if you have a complaint about any
charges to the account
- The institution's policies with respect to hold periods on deposits
There are two exceptions…
- If you're already an account holder and make a request by telephone
to open another account, the financial institution can give you
the necessary information verbally but must send the above-noted
information to you in written form within seven business days.
- If the account being opened is not a "personal" deposit account
and charges relating to it can't be determined at that time, the
institution can give you that information at a later date.
Financial institutions are also required to provide ongoing information
related to the accounts they offer. They must disclose all charges
on deposit accounts and services normally provided to their customers
and the public. In addition, they cannot increase or introduce charges
on personal deposit accounts without first notifying account holders.
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Borrowing costs
At or before the time a loan is made, financial institutions must
inform you about the borrowing costs and any charges or penalties
that may apply to the loan. |
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Coercive tied selling
Banks are prohibited from engaging in "coercive tied selling" —
using undue pressure on you or forcing you to obtain one product or
service as a condition for getting another. (More
about coercive tied selling…)
Banks are required to inform you of this prohibition. They must describe
the prohibition on coercive tied selling in a plain-language statement
that is clearly displayed and available at branches. |
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Complaint handling process
A financial institution is expected to provide you with information
about:
- its internal Complaint handling process if you have a complaint about
any of the institution's products, services, practices or policies;
- the independent ombudsman or dispute resolution service that
it belongs to;
- how to contact the Financial Consumer Agency of Canada (FCAC)
if you have a complaint about an institution not complying with
consumer laws.
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Credit cards
When issuing a credit, charge or payment card, a financial institution
must inform you about your rights and obligations and any charges
or costs related to the card. |
Deposit insurance
When investing your money, you should always ask whether the financial
product you want to buy is protected from risk. Deposit insurance
provides protection for certain types of deposits held in Canada
Deposit Insurance Corporation (CDIC) member institutions —
banks and trust/loan companies. If a member institution fails (i.e.,
goes bankrupt), a depositor is reimbursed up to $100,000 (principal
and interest combined) for eligible deposits.
Banks and federally regulated trust or loan companies are required
to provide information about the insurability of deposits by CDIC.
Be sure to ask for the CDIC brochure entitled Protecting Your Deposits.
You may also ask to see the institution's Deposit Registrar, which
contains a list of all products eligible for deposit insurance by
CDIC. Both these resources are available in every place of business.
For credit unions, the province in which the credit union is situated
will have a deposit insurance plan as well. Ask your credit union
for details or get more information on deposit
insurance in our Consumer Resource Centre. |
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Holds on cheques
When you open a personal deposit account, the bank must inform you
in writing about its policies concerning the holding of funds in respect
of the cheques deposited. If a bank changes its policies, it must
disclose the change to every customer in whose name a personal deposit
account is kept with the bank. |
Index-linked deposits
Banks, trust and loan companies, and retail associations that enter
into index-linked deposit contracts are required to provide information
about the product, in writing.
An index-linked deposit is a term deposit that pays a rate of return
based on the performance of one or more financial indicators such
as the level of a stock market index (e.g., Toronto Stock Exchange
[TSX] 60 or 35) over the term of the deposit. The formula for determining
the rate of return varies depending on the type of index-linked deposit,
the financial indicator used and the financial institution. (More
information about index-linked deposits...)
Have a question or complaint?
Call 1-866-461-3222 or contact us via our Web
site. If you believe that a financial institution has breached a
consumer law, click here
for information on making a complaint. |
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