Winnipeg Free Press - PRINT EDITION

Watchdog targets payment companies

  • Print

A federal consumer watchdog says some credit and debit card payment companies are breaking rules it created to protect retailers, which in turn could be costing Canadians more money.

The Financial Consumer Agency of Canada issued a warning to the industry on Wednesday that it will not tolerate payment companies who mislead merchants into paying hidden fees or lock them into confusing contracts.

The concerns stem from a code of conduct introduced by the federal government nearly three years ago designed to encourage further clarity in the contracts signed between retailers and credit and debit card companies.

But the agency said it found some payment companies, which it did not name, have been misrepresenting the terms of contracts with merchants by advertising and promising rates that they were unable to honour.

"Over the past year, we have seen certain practices by some in the industry that undermine the letter and spirit of the code," said commissioner Ursula Menke in a release.

"This guidance is meant to address these issues by providing better disclosure to merchants and eliminating inappropriate sales and business practices that result in increased costs for merchants, and consequently for consumers as well."

The agency said its investigation found some merchants signed agreements that they later discovered were linked to additional contracts that had different cancellation clauses, penalty fees or costs associated with them.

While the merchant was able to cancel the agreement without penalty, the agency said they were still locked into paying additional fees to cancel the other contracts.

-- The Canadian Press

Republished from the Winnipeg Free Press print edition February 15, 2013 B17

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

How Winnipeg's slow growth saved the Exchange District

View more like this

Photo Store Gallery

  • The sun peers through the fog to illuminate a tree covered in hoar frost near Headingley, Manitoba Thursday- Standup photo- February 02, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)
  • A gaggle of Canada geese goslings at Woodsworth Park in Winnipeg Monday- See Project Honk Day 05- May 07, 2012   (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