Voluntary code of conduct for credit and debit won’t protect consumers

OTTAWA – Federal Finance Minister Jim Flaherty today once again revealed the Harper Conservatives’ disregard for consumers with his announcement of a voluntary code of conduct for Canada's credit- and debit-card industries.

“Why is this government hesitating to introduce legislation that would guarantee consumers are protected?” asked New Democrat Consumer Protection critic Glenn Thibeault (Sudbury). “These delays will only make it that much harder to hold these companies to account since once the new debit networks are active, it will be a much greater challenge to rein them in.”

The proposed Code of Conduct will be circulated for a 60-day comment period. During that time, stakeholders have been asked to submit their views on how best to monitor compliance within the proposed Code.

According to research conducted by consumer advocacy group Option Consommateurs, voluntary codes do not serve the best interests of consumers.

“Why hasn’t this government learned from past experiences, from failed voluntary codes of the past?” said Thibeault. “This shows the government once again is currying favour with big businesses rather than taking a hard stance that is in the best interests of consumers.”

New Democrats and credit cards: a timeline

November 24, 2008
New Democrats are first to raise alarm bells over Canadians being gouged by outrageous credit card rates in the face of recession.

March 27, 2009
A nationwide poll shows a whopping 82 per cent of Canadians with credit cards support tighter rules for the credit industry.

April 27, 2009
Listening to Canadians, New Democrats pass a motion in Parliament calling on the Harper government to protect consumers from credit card gouging. The New Democrat plan calls for legislation to end abusive fees and interest rate hikes, while protecting young people and those who pay their bills on time. A majority of MPs vote in support of the New Democrats.

May 8, 2009
Harper’s Conservatives introduce their own credit card reform, which turns out to be little more than an information campaign to better show Canadians just how much they are getting gouged.   

June 30, 2009
Liberal and Conservative senators release a committee report recommending that consumers have their pockets picked even further. The report suggests that merchants be allowed to charge an extra fee to consumers who use ‘premium’ credit cards.  

October 27, 2009
The deadline for action set out in the New Democrat credit card motion comes and goes with no commitment from Harper’s Conservatives. Consumers are again left out in the cold by a government that puts banks and credit card companies first.

November 19, 2009
The Conservative government once again sides with its corporate friends by announcing a toothless voluntary ‘code of conduct’ for credit and debit card industries that does nothing for consumer protection.