C-663
Second Session, Forty-first Parliament,
62-63-64 Elizabeth II, 2013-2014-2015
HOUSE OF COMMONS OF CANADA
BILL C-663
An Act to amend the Bank Act, the Cooperative Credit Associations Act and the Trust and Loan Companies Act (charges for keeping an account in Canada)
first reading, April 2, 2015
Mrs. Day
412272
SUMMARY
This enactment amends the Bank Act, the Cooperative Credit Associations Act and the Trust and Loan Companies Act in order to limit the sums that may be charged or received for keeping an account in Canada and to provide for the tabling of a report in Parliament setting out all the sums charged or received for keeping an account in Canada.
Available on the Parliament of Canada Web Site at the following address:http://www.parl.gc.ca
2nd Session, 41st Parliament,
62-63-64 Elizabeth II, 2013-2014-2015
house of commons of canada
BILL C-663
An Act to amend the Bank Act, the Cooperative Credit Associations Act and the Trust and Loan Companies Act (charges for keeping an account in Canada)
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
1991, c. 46
BANK ACT
1. Section 440 of the Bank Act is renumbered as subsection 440(1) and is amended by adding the following:
No charges
(2) No sum may be charged or received for the handling of either a cheque presented by a customer and subsequently returned because there are not sufficient funds or a preauthorized debit payable to a customer and subsequently refused because there are not sufficient funds.
Maximum amount
(3) The charges set by express agreement between the bank and a customer for the handling of either a cheque issued by the customer and subsequently returned because there are not sufficient funds or a debit preauthorized by the customer and subsequently refused because there are not sufficient funds must not exceed the prescribed amount.
Regulations
(4) The Governor in Council may, by regulation,
(a) taking into account any recommendation presented by a committee under subsection 448.21(3), set the maximum amount of the sums that may be charged or received for the handling of either a cheque issued by a customer and subsequently returned because there are not sufficient funds or a debit preauthorized by a customer and subsequently refused because there are not sufficient funds; and
(b) oblige banks to establish rules concerning the communication to customers of the amount of time provided before a cheque that the customers have issued is returned or a debit that they have preauthorized is refused because there are not sufficient funds, in order to allow them to prevent the bank from returning the cheque or refusing the debit.
2. The Act is amended by adding the following after section 448.2:
Report
448.21 (1) No later than November 30 of each year, every bank shall present to the Minister, in the form established by the Minister, a report setting out all the sums that it charges or receives for the keeping of an account in Canada, by service, and the real costs associated with those services.
Report to Parliament
(2) The Minister shall cause to be tabled before each House of Parliament, no later than January 30 or, if Parliament is not sitting, on any of the first thirty days after that date that either House of Parliament is sitting, a report setting out all the sums that banks charge or receive for the keeping of an account in Canada, by service, and the real costs associated with those services.
Referral to committee
(3) The report shall be referred to the appropriate committee of each House, as determined by the rules of that House, and the committee may table its recommendations before that House, including recommendations concerning the maximum amount of the sums that can be charged or received by a bank for the handling of either a cheque issued by a customer and subsequently returned because there are not sufficient funds or a debit preauthorized by a customer and subsequently refused because there are not sufficient funds.
1991, c. 48
COOPERATIVE CREDIT ASSOCIATIONS ACT
3. Section 385.06 of the Cooperative Credit Associations Act is renumbered as subsection 385.06(1) and is amended by adding the following:
No charges
(2) No sum may be charged or received for the handling of either a cheque presented by a customer and subsequently returned because there are not sufficient funds or a preauthorized debit payable to a customer and subsequently refused because there are not sufficient funds.
Maximum amount
(3) The charges set by express agreement between the retail association and a customer for the handling of either a cheque issued by the customer and subsequently returned because there are not sufficient funds or a debit preauthorized by the customer and subsequently refused because there are not sufficient funds must not exceed the prescribed amount.
Regulations
(4) The Governor in Council may, by regulation,
(a) taking into account any recommendation presented by a committee under subsection 385.1301(3), set the maximum amount of the sums that may be charged or received for the handling of either a cheque issued by a customer and subsequently returned because there are not sufficient funds or a debit preauthorized by a customer and subsequently refused because there are not sufficient funds; and
(b) oblige retail associations to establish rules concerning the communication to customers of the amount of time provided before a cheque that the customers have issued is returned or a debit that they have preauthorized is refused because there are not sufficient funds, in order to allow them to prevent the retail association from returning the cheque or refusing the debit.
4. The Act is amended by adding the following after section 385.13:
Report
385.1301 (1) No later than November 30 of each year, every retail association shall present to the Minister, in the form established by the Minister, a report setting out all the sums that it charges or receives for the keeping of an account in Canada, by service, and the real costs associated with those services.
Report to Parliament
(2) The Minister shall cause to be tabled before each House of Parliament, no later than January 30 or, if Parliament is not sitting, on any of the first thirty days after that date that either House of Parliament is sitting, a report setting out all the sums that retail associations charge or receive for the keeping of an account in Canada, by service, and the real costs associated with those services.
Referral to committee
(3) The report shall be referred to the appropriate committee of each House, as determined by the rules of that House, and the committee may table its recommendations before that House, including recommendations concerning the maximum amount of the sums that can be charged or received by a retail association for the handling of either a cheque issued by a customer and subsequently returned because there are not sufficient funds or a debit preauthorized by a customer and subsequently refused because there are not sufficient funds.
1991, c. 45
TRUST AND LOAN COMPANIES ACT
5. Section 426 of the Trust and Loan Companies Act is renumbered as subsection 426(1) and is amended by adding the following:
No charges
(2) No sum may be charged or received for the handling of either a cheque presented by a customer and subsequently returned because there are not sufficient funds or a preauthorized debit payable to a customer and subsequently refused because there are not sufficient funds.
Maximum amount
(3) The charges set by express agreement between the company and a customer for the handling of either a cheque issued by the customer and subsequently returned because there are not sufficient funds or a debit preauthorized by the customer and subsequently refused because there are not sufficient funds must not exceed the prescribed amount.
Regulations
(4) The Governor in Council may, by regulation,
(a) taking into account any recommendation presented by a committee under subsection 434.01(3), set the maximum amount of the sums that may be charged or received for the handling of either a cheque issued by a customer and subsequently returned because there are not sufficient funds or a debit preauthorized by a customer and subsequently refused because there are not sufficient funds; and
(b) oblige companies to establish rules concerning the communication to customers of the amount of time provided before a cheque that the customers have issued is returned or a debit that they have preauthorized is refused because there are not sufficient funds, in order to allow them to prevent the company from returning the cheque or refusing the debit.
6. The Act is amended by adding the following after section 434:
Report
434.01 (1) No later than November 30 of each year, every company shall present to the Minister, in the form established by the Minister, a report setting out all the sums that it charges or receives for the keeping of an account in Canada, by service, and the real costs associated with those services.
Report to Parliament
(2) The Minister shall cause to be tabled before each House of Parliament, no later than January 30 or, if Parliament is not sitting, on any of the first thirty days after that date that either House of Parliament is sitting, a report setting out all the sums that companies charge or receive for the keeping of an account in Canada, by service, and the real costs associated with those services.
Referral to committee
(3) The report shall be referred to the appropriate committee of each House, as determined by the rules of that House, and the committee may table its recommendations before that House, including recommendations concerning the maximum amount of the sums that can be charged or received by a company for the handling of either a cheque issued by a customer and subsequently returned because there are not sufficient funds or a debit preauthorized by a customer and subsequently refused because there are not sufficient funds.
Published under authority of the Speaker of the House of Commons