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Ted Menzies, Minister of State (Finance), informed Canadian consumers that the ban on unsolicited credit card cheques comes into effect June 21, 2013.
As of June 21, 2013, all federally regulated financial institutions will be forbidden from sending unsolicited “promotional” or “convenience” cheques to their customers for use as cash advances.
Credit card cheques are considered cash advances, which generally incur high interest rates and fees, and do not offer an interest-free grace period.
“Starting today, credit card cheques will only be provided to Canadians who opt to use them,” said Minister Menzies. “This positive consumer measure is part of our Government’s ongoing efforts to better protect and inform Canadians.”
Federally regulated financial institutions must now obtain explicit consent from their credit card clients before offering them credit card cheques.