9/30/2005Important Information For Debit Card UsersOTTAWA, September 30, 2005 – The Financial Consumer Agency of Canada (FCAC)
is advising consumers to be aware of important changes, effective today, to the
industry code of conduct that outlines practices to protect Canadians from
liability in cases of debit card fraud or unauthorized transactions.
The debit card code, formally titled the Canadian Code of Practice for
Consumer Debit Card Services, stipulates that under certain conditions,
consumers will not be held liable for unauthorized use of their debit card. The
code has been revised to clarify the procedures for addressing unauthorized
transactions and other transaction problems. Among the changes to the code are
the following.
- A new limit has been set for how long the financial institution has to
investigate unauthorized transactions and respond to the consumer. The
financial institution that issued the personal identification number (PIN) to
the cardholder will investigate reports of unauthorized transactions and respond
to the consumer as soon as possible, but within a maximum of 10 business
days.
- In cases where the PIN issuer asks for a statement or affidavit from the
cardholder during the investigation, there may be a temporary suspension of the
10-day time limit until the financial institution receives the signed statement
or affidavit.
- In cases where the PIN issuer decides that not all funds should be
reimbursed to the consumer, the PIN issuer is responsible for showing that, on
the balance of probabilities, the cardholder contributed to the unauthorized use
of the card.
- The cardholder must be given information, in writing, on how the dispute
resolution process works if the problem cannot be settled when the cardholder
first complains or if he or she contacts the PIN issuer to indicate that they
have not received a response to their claim.
FCAC will be monitoring banks' compliance with the voluntary code, which has
been agreed to by banks, caisses populaires, and endorsed by Credit Union
Central of Canada.
Banks have also committed to apply the principles of the debit card code to
online payments from consumer deposit accounts. FCAC will be monitoring this
voluntary commitment as well.
For more information on these and other codes of conduct, consumers can
contact FCAC toll-free by calling: 1-866-461-3222. Consumer may also visit the
Consumer Protection section of the Agency's Web site (www.fcac.gc.ca).
FCAC ensures compliance with the consumer protection laws that apply to banks
and federally incorporated trust, loan and insurance companies. FCAC also
provides consumers with accurate and objective information about financial
products and services, and informs Canadians of their rights and
responsibilities when dealing with federally regulated financial institutions.
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Media contacts:
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Martine Bélanger
Media Relations Officer
(613) 941-8982
belanger.martine@fcac.gc.ca
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Christina McDonald
Communications Officer
(613) 941-4168
mcdonald.christina@fcac.gc.ca
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