New Banking Regulations

1 post / 0 new
KeyStone
New Banking Regulations

The Conservatives brought out some new regulations on credit cards. It's not the interest rate maximums that some were seeking. Instead, it's a 21 day grace period, between purchases, and being charged interest, as well as a demand that banks summarize key information: interest amount, interest rate, and months to pay off the credit card with a fixed sum.

Unsuprisingly the banks are crying foul.

"New credit card rules that Ottawa published on Wednesday will cost the country's banks hundreds of millions of dollars at a time when they are still recovering from the financial crisis, the industry says." They also say one year is not enough time to implement the changes.

Full Article: http://www.theglobeandmail.com/report-on-business/banks-balk-at-new-cred...

Points:

1) I could program these changes in about 5 minutes. This is not rocket science and does not represent 1% of the changes that the various regulatory boards request on an annual basis.

2) I suppose I shouldn't be surprised that the banks are that loathe to reveal the truth to consumers about how much the interest really is. They obviously realize how much they make my obscuring the numbers, and hiding such information from the consumer.

3) The Canadian banks were always profitable, and record profits are just around the corner, so using the 'still trying to recover card' doesn't cut it.

4) These changes are particularly insubstantial.

5) Personally, I think that all these objections are a facade, aimed at making it seem as if the Conservatives are really taking it to the big banks, when in fact, these changes have probably been carefully discussed and agreed upon by the banks well in advance.