The Canadian Press - ONLINE EDITION

Finance Minister Oliver says banks to offer customers more financial information

  • Print

TORONTO - Canadian banks will soon provide customers with more information on the potential risks associated with products and services such as joint bank accounts, collateral mortgages and power of attorneys, federal Finance Minister Joe Oliver announced Wednesday.

General information on these topics was posted on eight bank websites this week, with pamphlets to be made available in bank branches by the end of this year.

The banks have also voluntarily committed to training front-line staff in these areas by end of March.

Oliver said making this type of information easily available will provide an additional level of transparency to those who are not financially literate or unclear on rules governing various financial products available.

"This information will allow consumers to make more informed choices," he said in making the announcement at the non-profit charity, Credit Canada Debt Solutions.

One example is that some Canadians may not know that they could be put at financial risk if they open a joint account with another person, and that person drains the account.

"Many Canadians, including seniors, put their funds into an account with another person, perhaps a family member or a friend. Yet that other person might use the funds for their own purposes without consent," said Oliver.

"Furthermore, funds deposited by one person could be at risk of a claim against the other account holder so it's important that before making a decision to open a joint account, depositors understand the implications of that decision."

Banks have also pledged to explain the differences between collateral mortgages, ones that use your home as security against your loan, and conventional mortgages to new mortgage customers.

Oliver said some Canadians may not realize that it will be difficult to switch to another lender with a better rate when their collateral mortgage expires, as opposed to a conventional mortgage.

The banks will also have information available about power of attorneys, when it comes to financial matters, he added.

Earlier this year, the banks also signed an agreement with the federal government to provide no-cost bank accounts to youth, seniors, students and those who are on disability or qualify for the guaranteed income supplement. These changes will come into effect in January 2015.

Follow @LindaNguyenTO on Twitter.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Étienne Gaboury: Manitoba "shining light" of architecture

View more like this

Photo Store Gallery

  • Horses enjoy a beautiful September morning east of Neepawa, Manitoba  - Standup Photo– Sept 04, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)
  • A monarch butterfly looks for nectar in Mexican sunflowers at Winnipeg's Assiniboine Park Monday afternoon-Monarch butterflys start their annual migration usually in late August with the first sign of frost- Standup photo– August 22, 2011   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

Do you support Canada's involvement in the fight against Islamic State?

View Results

View Related Story

Ads by Google