Mistakes, Complaints and Official Sources
Credit card mistakes that cost Canadians money, and the official sources to check
The common patterns that turn a rewards card into a cost, from carried balances and cash advances to expired points and scams, with the federal and provincial bodies that set the rules.
The most expensive credit card mistake in Canada is simple: carrying a balance on a rewards card. At a purchase rate of about 20% (illustrative), a balance of $2,000 carried for a year costs about $420 in interest, more than most households earn in rewards. The other costly patterns are taking cash advances, paying foreign transaction fees without noticing, letting points expire, chasing welcome bonuses with spending you did not need, missing payments and falling for card-related scams. This guide lists those patterns with the arithmetic, and ends with the official bodies that set and enforce credit card rules in Canada.
This is the overview for the mistakes and sources section. It links to a detailed guide on each topic.
Ten patterns to avoid
| Mistake | What it costs (illustrative) | Better approach |
|---|---|---|
| Carrying a balance on a rewards card | $2,000 for a year at 20.99% ≈ $420 interest | Pay the full statement balance automatically; use a payoff plan if you can't |
| Paying only the minimum | $3,000 at 20.99% with a 3% minimum: about 18 years and $3,750 interest | Fixed monthly payment with an end date |
| Cash advances | $500 for 30 days at 22.99% ≈ $9.45 interest plus the advance fee, with no grace period | Use debit or savings; see cash advances |
| Ignoring foreign transaction fees | $6,000 of foreign spending at 2.5% = $150 | Card without the fee for foreign spending |
| Letting points expire or forfeiting them on cancellation | Whatever the points were worth | Redeem regularly; see points expiry |
| Spending to reach a welcome bonus | $600 of unneeded spending for a $400 bonus = −$200 | Apply only when normal spending covers the minimum |
| Paying a fee you don't recover | $120 fee for $102 of extra rewards = −$18 | Run the break-even; downgrade at renewal |
| Missing a payment | Late fees, possible rate increase, a late payment on your credit report | Automatic payment of at least the minimum |
| Applying for many cards at once | Several hard inquiries; possible declines | Space out applications; check eligibility first |
| Ignoring fraud alerts | Time and stress; possible liability if grossly negligent | Act on alerts; see fraud and liability |
Mistakes in comparing cards
- Using headline rates on all spending. Bonus rates apply only to merchant categories the network recognizes, often with caps.
- Valuing points at their best possible redemption. Use the value you will actually get; see cents per point.
- Counting insurance you would never claim. Benefits have value only if you would otherwise buy them.
- Comparing only year one. A first-year waiver and a bonus do not repeat.
The rewards worked examples show the correct method.
Mistakes after a problem
- Not disputing an error quickly. Statements must show how to dispute billing errors; delay makes them harder to resolve. Write to the issuer as soon as you notice.
- Paying a "debt relief" company upfront. Fees charged before any result are a warning sign. Non-profit credit counselling agencies and Licensed Insolvency Trustees are the regulated routes.
- Assuming you have no recourse. Banks must have a complaint process and belong to an external complaints body. See complaints.
- Closing your oldest card on impulse. It can shorten your credit history and reduce your available credit; see credit score effects.
The official sources
| Body | Role for credit cards | Website |
|---|---|---|
| Financial Consumer Agency of Canada (FCAC) | Supervises banks' compliance with federal consumer protection law and the Code of Conduct for the Payment Card Industry; consumer education | canada.ca/en/financial-consumer-agency |
| Justice Laws Website | Official text of the Bank Act, the Financial Consumer Protection Framework Regulations and the Criminal Code | laws-lois.justice.gc.ca |
| Ombudsman for Banking Services and Investments (OBSI) | Single external complaints body for banks since 1 November 2024 | obsi.ca |
| Office de la protection du consommateur (OPC) | Quebec's consumer protection regulator, applies the Consumer Protection Act | opc.gouv.qc.ca |
| Provincial consumer protection offices | Rules for provincially regulated issuers and retailers, for example Consumer Protection Ontario and Consumer Protection BC | ontario.ca, consumerprotectionbc.ca |
| Equifax Canada and TransUnion Canada | The two national credit bureaus; free credit reports and disputes | consumer.equifax.ca, transunion.ca |
| Canadian Anti-Fraud Centre | Reporting card fraud and scams | antifraudcentre-centreantifraude.ca |
| Office of the Superintendent of Bankruptcy | Licensed Insolvency Trustees, consumer proposals and bankruptcy | ised-isde.canada.ca |
| Credit Counselling Canada | Association of non-profit credit counselling agencies | creditcounsellingcanada.ca |
The key rules, in one place
- Grace period: at least 21 days from the end of the billing cycle to the minimum payment due date, and no interest on purchases if paid in full (Bank Act s. 627.34).
- Payment allocation: amounts above the minimum go to the highest-rate balance first or proportionally (s. 627.35).
- Consent: no card and no limit increase without express consent (s. 627.32).
- Liability: $50 maximum for unauthorized use unless grossly negligent (s. 627.33).
- Criminal rate: 35% APR since 1 January 2025 (Criminal Code s. 347).
- Quebec: minimum payment at least 5%; no over-limit fees; no card surcharges.
When to get professional help
- Debt you cannot repay within a few years at a payment you can afford: a non-profit credit counsellor or a Licensed Insolvency Trustee.
- A legal dispute with an issuer that the complaint process did not resolve: a lawyer, or small claims court for smaller amounts.
- Tax questions about rewards on business spending: an accountant.
Frequently asked questions
Is it a mistake to have more than one credit card?
Not in itself. Two cards can cover different categories or give a backup. The risk is more fees and more balances to track.
Should I close a card I don't use?
If it has an annual fee you don't recover, probably yes, after redeeming points. If it is a no-fee card with a long history, keeping it open and occasionally used can help your credit file.
Who regulates credit unions' cards?
Most credit unions are provincially regulated, so provincial law and the provincial regulator apply, and complaints follow the route the credit union describes.
Where do I report a scam call claiming to be my bank?
Hang up and call the number on the back of your card. Report the call to the Canadian Anti-Fraud Centre.
Sources
- Financial Consumer Agency of Canada — credit cards, complaints, payment card code
- Justice Laws Website — Bank Act Part XII.2, SOR/2021-181, Criminal Code s. 347
- Ombudsman for Banking Services and Investments — external complaints
- Office de la protection du consommateur — Quebec rules
- Canadian Anti-Fraud Centre — fraud reporting
