Card Costs, Comparison and 2026 Rules
Credit card disclosure rules in Canada: the information box, statements and the Financial Consumer Protection Framework
What federally regulated banks must disclose on credit card applications, agreements and monthly statements under the Bank Act and SOR/2021-181, including the minimum payment estimate.
Banks in Canada must put the key terms of a credit card in an information box at the start of the application and the agreement, send a statement at least monthly that includes an estimate of how long it would take to pay off the balance with minimum payments only, give at least 30 days' notice of most changes, and obtain your express consent before opening a card or raising your limit. These rules come from Part XII.2 of the Bank Act and the Financial Consumer Protection Framework Regulations (SOR/2021-181), which came into force on 30 June 2022 and replaced the older Cost of Borrowing (Banks) Regulations. Reading the information box first is the fastest way to compare cards.
This guide is part of the cashback versus points overview. It summarizes the rules for banks; credit unions and retailers are mostly governed by provincial law.
Who these rules cover
The Bank Act and its regulations apply to banks and, through parallel legislation, to other federally regulated institutions. A card issued by a provincially regulated credit union or caisse, or by a retailer through a non-bank lender, is generally subject to provincial consumer protection law instead. In Quebec, the Consumer Protection Act applies to credit card contracts, and how far it reaches cards issued by federal banks has been the subject of court decisions; see Quebec's rules.
The information box
Under sections 59 and 60 of SOR/2021-181, the information box must include, among other things:
| On the application (s. 59) | On the agreement (s. 60) |
|---|---|
| Annual interest rate, or the public index it is based on | Initial credit limit, if known |
| Length of the interest-free grace period, in days | Annual interest rate(s) |
| Minimum payment required each period | Grace period |
| How foreign currency transactions are converted | How interest is calculated |
| Annual charges such as the annual fee | Minimum payment |
| Other non-interest charges | Other charges |
Where the disclosure is part of the application, it must be consolidated in one place with the box at the beginning. When a bank solicits applications, the required information must be disclosed at the time of the solicitation.
How to use it. Put two information boxes side by side and compare: purchase rate, cash advance rate, grace period, annual fee, foreign transaction fee, fees for additional cards, over-limit fee (if any), and the minimum payment formula. The rewards card checklist lists the items.
The monthly statement
Section 66 of the regulations requires a statement at least once a month (with some exceptions for inactive accounts). It must show, among other information:
- the amount you must pay by the due date to keep the grace period;
- the minimum payment and its due date;
- an estimate of the time in months and years it would take to pay the balance in full if you made only the minimum payment each period, calculated on stated assumptions;
- circumstances that could raise your interest rate and the rate that would then apply.
The estimate is not required when the agreement requires the full balance to be paid each month.
Illustrative example. On a $3,000 balance at 20.99% with a minimum of 3% of the balance (at least $10), the minimum-only payoff time is about 18 years and the interest about $3,750. Your statement's estimate is calculated by the bank's own method, so it will differ, but it will make the same point. The minimum payment worked example shows the arithmetic.
Changes to your agreement
- Most amendments must be disclosed 30 days or more before they take effect (s. 67).
- Some changes are "prescribed amendments" that can be disclosed later, no later than the next statement: a change in the credit limit, an extension of the grace period, a decrease in a fixed interest rate and some others (s. 68).
- Rate changes tied to a public index are disclosed on the statement.
If you disagree with a change, you can usually cancel the card. Pay off the balance first and redeem any rewards.
Consent, limits and payments
- Express consent. A bank may not open a credit card account for you or increase your credit limit without your express consent; oral consent must be confirmed in writing by the first statement, and using the card does not count as consent (Bank Act, s. 627.32).
- Payment allocation. When balances carry different rates, payments above the minimum go to the highest-rate balance first or are split proportionally (s. 627.35).
- Over-limit charges from holds. A bank may not charge you an over-limit fee caused only by a hold (for example a hotel or gas pump hold), unless you would have exceeded the limit anyway (s. 627.36).
- Liability for unauthorized use is limited to $50 unless you were grossly negligent (s. 627.33); see fraud and liability.
Advertising rules
When a bank advertises a credit card, the advertisement must state the annual interest rate as at the date of the advertisement and the non-interest charges (s. 70). If a waiver of payments is offered, the bank must say whether interest accrues during the waived period (s. 69). Promotional rates on a statement are part of the minimum-payment estimate rules. Keep screenshots of any promotional offer you rely on.
What to do if a bank does not follow the rules
- Raise it with the bank through its complaint process; see complaints.
- If it is not resolved, take the complaint to OBSI.
- You can also tell the FCAC, which supervises compliance but does not resolve individual complaints.
Frequently asked questions
Are the old Cost of Borrowing (Banks) Regulations still in force?
No. They were replaced by the Financial Consumer Protection Framework Regulations when the framework came into force on 30 June 2022.
Do these rules apply to a store card?
Only if a bank issues it. Many retail cards are issued by banks, so check who the issuer is in the agreement. Others are provincially regulated.
Does the minimum payment estimate include new purchases?
No. It assumes you make only the minimum payment and add nothing new.
Does the information box show the rewards earn rate?
No. Rewards terms are usually in a separate program document. The box covers the cost of credit.
Sources
- Justice Laws Website — Bank Act ss. 627.32 to 627.36; Financial Consumer Protection Framework Regulations (SOR/2021-181) ss. 59 to 70
- Financial Consumer Agency of Canada — guidance on credit card disclosure and the consumer protection framework
- Office de la protection du consommateur — Quebec disclosure requirements
