Consumer rights are an important factor between companies and their consumers. Not all consumers are financially smart or have patience to read the fine print. Hence, it is easy for large corporations to bully them. However the government has rules and regulations to protect consumers that give them certain rights. Every credit card holder has certain rights that they can demand from their lenders. These rights are assured to you and every consumer by the Financial Consumer Agency of Canada (FCAC). You may have an unsatisfactory experience in using your credit card. So ask yourself, what are your rights in such a case?
When applying for a credit card
- You have a right not to be subjected to any sort of discrimination based on your race, gender or religion. You cannot be denied a credit card on the basis of previous loans or other financial means of public assistance, unless you have a history of not paying back on time. Credit card issuers must reveal the result of your credit card application within thirty days. If they have turned down your application, then they must give you a reason within sixty days.
- You have the right to information on the credit cards, fees, interest rates, other charges, penalties and information. However, much of this information is written down in fine print under terms and conditions and many consumers don’t have the patience or the technical language skills to understand everything. Take the time to read through these and ask your credit card company for clarifications in writing if you have any doubts.
While owning a credit card
- As a credit card user, you have the right to receive the credit card bill twenty one days before payment is due. Every month, the credit card issuer must send a financial statement containing the outstanding balance, the length of time it would take to pay it off and a detailed list of every transaction made. Twenty one days is considered as a grace period time.
- If any of the features of the credit card, such as the interest levied on you is changed, then the credit card issuer must inform you thirty days in advance before the change comes into effect.
- You have a right to check your credit report and credit score from the two credit bureaus, TransUnion Canada and Equifax Canada.
- The credit card issuer must apply every monthly payment you make to the principle balance and not just the interest.
- If ever you find that a financial transaction that has been recorded is irregular or simply did not occur, you have the right to report it to your credit card issuer.
- You have a right to file a complaint against the credit card issuer, if there is a financial dispute between you and the credit card issuer regarding issues such as their customer service or the correctness of the financial statement that they have drawn. You also have the right to file a complaint with FCAC.
When terminating your credit card
- Whenever and for whatever reasons, you have a right to terminate the credit card. The credit card issuer cannot deny you this right and will have to comply with your demand to terminate it.
As a consumer, it is important to be aware of your rights and exercise them so that you are not taken advantage of by your credit card issuer.
