New prepaid credit card rules coming
The federal government says it’s doing away with expiry dates on prepaid credit cards, along with extra fees that eat away at the card's balance.
Prepaid credit cards are a popular gift for that "difficult to buy for" person on everyone's list. They don't bind the receiver to spend the funds at one particular store, allowing them to purchase whatever they want. However, card expiry dates, and fees that slowly chip away at the original balance of the card are hardly a gift anyone wants to receive.
Following numerous consumer complaints, the federal government has set out to change all that. New regulations that govern the manner in which the popular gifts will be in effect May of 2014, ridding the cards of expiration dates, and eliminating fees that will lower the balance of the card within the first year. Going forward, any regulations that govern the cards will have to be made clear to consumers.
The federal government is also putting forth a consumer code to govern financial products, which is open to comments until the end of February. To learn more, or to have your say, visit code.consult@fin.gc.ca