Appearance before the House Standing Committee on Finance (FINA) (April 13, 2026)

Overview

FCAC data on non-mortgage indebtedness

• FCAC’s Monthly Financial Well-Being Monitor shows that in 2025:
  • 40% of Canadians say their debt grew
  • 33% of Canadians borrowed to cover regular expenses
  • 26% of Canadians spent more than their income
  • 4% of Canadians used a payday loan or online loan
• Indebtedness (non-mortgage) is highest among Canadians aged 35-54 and parents of children under the age of 18.

Market conduct obligations: Disclosure and express consent

• FCAC’s role is to supervise federally regulated financial institutions’ compliance with their obligations to disclose fees and obtain consumers’ express consent. We take enforcement action when banks fail to meet these obligations.
  • Banks must provide consumers with information in a manner, and using language, that is clear, simple, and not misleading. This applies to disclosure documents such as application forms or agreements for credit cards, personal loans and lines of credit.
  • Banks must get the consumer’s express consent before providing them with products or service, such as a credit card, a loan or a line of credit.

Mortgage guideline (2023)

• Sets supervisory expectations for banks to offer tailored support to consumers with an existing residential mortgage who are at risk of default.
• As of December 2025:
  • banks had contacted account holders for more than 165,000 mortgage accounts at risk of default
  • Canadians had avoided more than $7.85 million in penalties and fees that they would have incurred if they had had to deal with late or missed mortgage payments

Research related to consumer indebtedness:

• FCAC advances the rights and interests of consumers by conducting and publishing research on trends, opportunities and emerging issues that impact how consumers interact with financial products and services.
• This research informs our supervision and financial literacy activities, those of our partners, and informs policy advice that strengthens consumer protections and supports improved financial outcomes for Canadians.

Partnerships

• As a small agency, we cannot tackle the challenges of the financial system alone.
• We work with federal and provincial partners, given shared responsibilities for the financial sector.
• FCAC collaborates closely with regulatory agencies and members of the Financial Institutions Supervisory Committee, to ensure the stability, integrity, and resilience of Canada’s financial system through supervision.
• We also share our research and data widely with collaborators across the financial literacy ecosystem, so that they can leverage our work to collectively help improve financial outcomes for Canadians.

Fraud

• Serious cross sectoral concern; shared responsibility.
• New Budget 2025 fraud measures will better enable FCAC to protect financial consumers:
• monitor trends, identify risks to inform supervision, stakeholder ecosystem, tailor financial literacy initiatives and provide data to inform Finance’s policy work
• Current mandate: supervise market conduct obligations for unauthorized debit and credit card transactions.
• Banks must investigate each case and take all relevant factors into account prior to finding a consumer liable, regardless of the method or technology used to process a transaction.
• Consumers should contact their bank and the authorities if criminal activity suspected, file a complaint with their bank if unsatisfied, option to escalate to OBSI.

FCAC data on household indebtedness

Issue:

In keeping with its research part of its mandate, FCAC monitors the impact of non-mortgage debt on Canadians’ financial well-being through a variety of data collection tools.

Key messages:

• Many Canadians are under financial strain.
• FCAC’s Monthly Financial Well-Being Monitor and the longitudinal Canadian Financial Capability Survey measure indicators of financial hardship that reflect ongoing economic pressures:
  • over half of Canadians (53%) report that they struggle to keep up with financial commitments
    • a quarter (26%) say they spend more than they earn
    • 50% used savings to cope with economic conditions in the past year
    • over a third (33%) borrowed to cover regular expenses
  • Groups that have more non-mortgage debt than the national average (64%) include:
    • those aged 35-54 (74%)
    • parents of children under 18 (79%)
  • Nearly two thirds of Canadians (65%) have at least one type of non-mortgage debt, such as an unpaid balance on their credit card, a personal or car loan, or a home equity line of credit (HELOC).

Supplementary information:

Having more types of debt, or having increasing amounts of debt, is strongly associated with lower financial well-being.

Debt types vary by income, for example:

• households with low annual incomes are more likely to have credit card debt (43%), but less likely to have personal loans (24%), automobile loans (14%) or HELOCs (4%).

Figure 1. 

Definition of financial well-being:

A state in which individuals can smoothly manage financial needs and obligations, cope with negative shocks, pursue aspirations, goals and capture opportunities, and feel satisfied and confident about their financial lives.

Monthly financial well-being monitor

Issue:

FCAC uses data from its Monthly Financial Well-Being Monitor to deliver on its strategic goals: effective consumer protection, empowering consumers to be more financially literate and resilient, and advancing the interests of financial consumers.

Key messages:

• As FCAC’s most frequently fielded survey, the Monthly Financial Well-Being Monitor helps FCAC identify financial consumer trends, including early signs of vulnerability and the impact of economic or policy events.
• Data from the Monthly Financial Well-Being Monitor help drive FCAC’s supervisory approach, which in turn leads to initiatives such as FCAC’s Guideline on Existing Consumer Mortgage Loans in Exceptional Circumstances (or “the Mortgage Guideline”).
• The Monitor’s data also help identify ways to improve the financial literacy of Canadians through new consumer information, behavioural interventions, tools and other resources.
• FCAC shares data and insights from the Monitor with the Department of Finance to inform its policymaking, as well as with FCAC’s stakeholders in the financial literacy ecosystem to inform their work on behalf of Canadians.

Supplementary information:

FCAC’s Monthly Financial Well-Being Monitor tracks information about Canadians’ day-to-day financial management and financial well-being by collecting data from about 1,000 respondents each month.

Since its launch, the survey has collected responses from over 65,000 Canadians. The consistent frequency and stable questionnaire design allow us to generate reliable insights into how consumers’ financial well-being is evolving over time.

The Monitor includes questions on topics such as savings and debt, money management and financial vulnerability. Below are the Monitor’s latest figures (from 2025) related to debt, with 2021 figures for comparison:

* NOTE: Until 2023, the survey asked if debt had increased since the pandemic began. In 2024, the question changed to ask if debt had risen over the preceding 12 months.

National Financial Literacy Strategy assessment & renewal

Issue:

The current National Financial Literacy Strategy runs until 2026, and FCAC is now evaluating the results and planning a renewed Strategy.

Key messages:

• Led by FCAC, the National Financial Literacy Strategy is designed to improve the financial well-being of Canadians, particularly those facing barriers or in vulnerable situations.
• By acting as a national convenor, connector and amplifier as well as a clearinghouse for financial literacy data, FCAC helps the financial literacy ecosystem quickly focus on the approaches that work best and apply them more widely.
  • This helps save time and scarce resources, reduce duplication, and strengthen collective impact and benefits for Canadians.
• Assessing the Strategy’s contributions in greater detail and planning the Strategy’s renewal will be a key part of the Agency’s work in the coming year.

Supplemental information:

As part of its work on the Strategy, FCAC has worked with more than 300 stakeholder organizations across the country, each of which works to improve the financial literacy and well-being of Canadians in many ways.

Through the Strategy, FCAC and its stakeholders in have collectively reached more than 700,000 Canadians and supported more than 200,000 of them in making better financial decisions, while gathering insights that are fed back into the stakeholder ecosystem to improve future initiatives.

The insights and data gathered through FCAC's work on the Strategy have also informed efforts around the world, including those of the Organization for International Co-operation and Development, the International Network on Financial Education and other international stakeholders.

Resources to help consumers manage debt

Issue:

As part of its mandate to strengthen financial literacy, FCAC provides financial information, tools and resources helps Canadians manage debt.

Key messages:

• FCAC provides unbiased, accessible and user-friendly financial information, tools and resources to help consumers understand their rights and responsibilities and make informed financial decisions.
• Online tools including the Mortgage Calculator, Credit Card Payment Calculator and Vehicle Lease or Loan Calculator help Canadians understand the true cost of debt.
• On Canada.ca, FCAC’s consumer information on managing debt covers topics including paying down debt, getting help with debt, managing money when interest rates rise, making a budget and more.
• In the past year (March 16, 2025 to March 15, 2026), FCAC’s consumer information pages, calculators and tools were visited more than 8.6 million times.

Supplementary information:

Ad campaign [see issue sheet on next page for more]

FCAC is running a national advertising campaign until the end of March titled “Managing Money in a Complex and Changing Economy.

The campaign promotes our resources to help Canadians navigate financial challenges brought on by rising costs, job instability, and global trade tariffs, such as the Budget Planner and Mortgage Calculator.

Between January 15 and March 31, 2026, the campaign generated more than 1.5 million visits to these resources on Canada.ca.

Financial Literacy Month

Financial Literacy Month is a national campaign led by FCAC each November, bringing together organizations across Canada to advance financial literacy.

The campaign encourages open conversations about personal finances, building on the momentum of previous campaigns to reduce stigma and strengthen Canadians’ financial confidence.

Through collaborations with federal government partners, the 2026 campaign had a potential reach of over 2 million Canadians, and the number of organizations supporting the campaign more than doubled from 2024 to 2025.

Advertising campaign

Issue:

FCAC’s annual advertising campaign for 2026 was designed to respond to the needs of consumers impacted by Canada’s changing economy.

Key messages:

• Launched in January and running till the end of March, the “Managing Money in a Complex and Changing Economy” campaign equips Canadians with practical tools and resources to navigate financial challenges brought on by rising costs, job instability, and global trade tariffs.
• It promotes FCAC’s tools and resources such as the Budget Planner and Mortgage Calculator.
• The campaign generated more than 1.5 million visits to these resources on Canada.ca, exceeding our goal by nearly 25%.

Supplementary information:

The ads are geared towards Canadian financial consumers most impacted by rising costs and job instability:

• low-income households (annual income of $40K or less)
• younger adults (ages 25-44)
• families with children, especially single-parent households
• workers, particularly in manufacturing, construction, agriculture and automotive sectors

The budget for the national campaign is $3 million.

Mortgage guideline

Issue:

In 2023, FCAC issued a guideline setting expectations for banks to offer relief to mortgage holders at risk of default on their principal residence.

Key messages:

• In early 2023, FCAC’s research showed that Canadians were facing an exceptionally challenging economic environment that could lead to severe financial stress among some mortgage holders.
• In response, FCAC issued a Mortgage Guideline setting expectations for federally regulated financial institutions.
• We asked institutions to offer tailored support to consumers with an existing residential mortgage loan on their principal residence who were experiencing severe financial stress, and at risk of mortgage default.
• Banks have been providing FCAC with quarterly reports on their implementation of the Guideline.
• As of December 2025:
  • 41,000 Relief measures offered for principal residence mortgage accounts at risk
  • 165,000+ Mortgage accounts at risk where the bank contacted the account holder 
  • $7.85 million+ Penalties and fees for late or missed mortgage payments avoided.

NSF fee cap

Issue

A new cap of $10 on NSF fees took effect on March 12, 2026. This measure helps consumers who may be struggling financially, as NSF fees can add up to substantial amounts.

Key messages:

• Non-sufficient fund (NSF) fees on personal deposit accounts are capped at $10 per account as of March 12, 2026.
• FCAC will oversee industry compliance with the new NSF fee requirements.
• FCAC also published information for consumers on Canada.ca explaining their rights regarding NSF fees.

Supplementary information:

These new rules will help all consumers, especially those who are financially vulnerable.

Multiple NSF fees can add up to substantial amounts in a short period and disproportionately impact the financial well-being of financially vulnerable Canadians.

Before these regulations came into force, NSF fees typically ranged from $45 to $48.

NSF fees were often applied regardless of the size of the account shortfall and could be charged in rapid succession because of multiple declined payments.

The new regulations include the following consumer protections:

• consumers cannot be charged more than $10 in NSF fees when they do not have enough money in their personal deposit account to cover a payment
• consumers will not be charged an NSF fee more than once in a period of 2 business days for the same personal deposit account
• consumers will not be charged NSF fees on a personal deposit account if the overdraft is less than $10

Definition of NSF fees

Banks may charge NSF fees when a consumer’s account has insufficient funds to cover a payment, as well as if a consumer exceeds their overdraft protection.

Low-cost/no-cost bank accounts

Issue

The 2014 Commitment on Low-Cost and No-Cost Accounts was modernized in 2025, following Budget 2024 and FCAC’s research and consultations.

Key messages:

• As of December 1, 2025, Canadians now benefit from modern low-cost and no-cost accounts costing no more than $4 per month.
• The Commitment has been signed, so far, by 14 federally regulated financial institutions, including Canada’s 6 largest banks.
• FCAC will monitor signatories’ compliance with all its obligations.

Supplementary information:

The 2014 Commitment was revamped to:

• reflect consumers’ evolving banking needs, with modern transaction types such as electronic fund transfers.
• support financially vulnerable Canadians: more groups will be eligible for an account costing $0 per month, including newcomers to Canada in their first year.

All Canadians can access low-cost accounts. Eligible groups for $0 accounts include:

• Seniors receiving the Guaranteed Income Supplement
• Registered Disability Savings Plan (RDSP) beneficiaries
• Youth (Canadians aged 18 and under)
• Students
• Newcomers to Canada (for first year in Canada)

Plus: at least one of the following groups, to be selected by each signatory:

• Indigenous peoples
• Canadians receiving social assistance payments from select provincial or territorial programs
• recipients of the Disability Tax Credit
• Signatories to date:

Appropriate products

Issue:

The appropriate products provision in the Bank Act (627.06) has implications for the Committee’s study of household debt. Financial institutions must consider consumers’ financial needs when selling products and services.

Key messages:

• Banks must offer products or services that are appropriate for their consumers’ financial needs.
• FCAC is currently reviewing the policies and procedures implemented by banks to meet these requirements.
• We will publish the findings of our review and work with financial institutions to address any compliance issues or deficiencies in a timely manner.

Supplementary information:

Banks must inform consumers if they’ve assessed that a product or service isn’t appropriate for them.

Banks must ensure that the way they pay their employees doesn’t interfere with the appropriate products consumer protection provision. For example, an employee should not get a bonus for meeting a sales target if they sold an inappropriate product to a consumer.

These requirements were introduced in the Bank Act following FCAC’s 2018 review of domestic banks’ retail sales practices. (Bank Act 627.06 and 627.07)

That review found retail banking culture was predominantly focused on selling products and services, increasing the risk that consumers’ interests were not always given the appropriate priority.

FCAC supervision and enforcement

Issue:

FCAC’s supervision of regulated entities is effective in ensuring financial consumers benefit from compliance with consumer protections.

Key messages:

• Our principle of putting consumers first guides all our work, including our supervisory interventions.
• Our work builds trust and confidence in financial institutions, which in turn contributes to the safety and soundness of Canada’s financial system.
• When consumers benefit from the protections to which they are entitled, they are empowered to make informed financial decisions and achieve positive financial outcomes.

Enforcement

• If FCAC finds that a regulated entity breached its market conduct obligations, it takes enforcement action to bring the entity into compliance.
• The goal of enforcement is to make affected consumers whole and to promote industry compliance through transparency.

If pressed for examples of effectiveness:

• In 2023, FCAC issued the Mortgage Guideline, setting expectations for federally regulated financial institutions to offer tailored support to consumers with an existing residential mortgage.
• As of December 2025, mortgage holders had avoided more than $7.85 million in penalties and fees that they would have incurred if they had had to deal with late or missed mortgage payments.

If pressed on financial consumer protection framework:

• The Financial Consumer Protection Framework in the Bank Act protects Canadians in their dealings with banks and federal credit unions. It came into force in 2022.
• It includes more than 60 enhanced consumer provisions, including the right for consumers to:
  • access basic banking
  • receive key information so they can make informed decisions (e.g. e-alerts, product disclosure statements)
  • access a fair, timely and effective complaints process when they have problems

Supplementary information:

FCAC’s supervision approach aims to prevent harm to consumers by detecting risks early so financial entities can take corrective actions.

Our top priority is supervising financial entities that are at higher risk of non-compliance, and issues that have a higher risk of causing financial harm to consumers.

This approach fosters compliance, supports a competitive and predictable industry environment, and ultimately protects consumers by preventing problems before they become systemic.

Remediation

$133 million reimbursed to consumer and business accounts between April 1, 2024, and December 31, 2025.

Example of a breach requiring remediation: if the cost of a product or service differed from what was disclosed to consumers.

Administrative monetary penalties

Since 2022, regulated entities have paid penalties totalling $26.8 million for violations of consumer provisions.

FCAC can impose a penalty of up to $10 million per violation.

Administrative monetary penalties are not considered re-spendable revenues and are therefore not part of the Agency’s funding.

Proceeds of penalties are payable to the Receiver General.

Bank fee study

Issue:

The government asked the Financial Consumer Agency of Canada to prepare a report on the structure, level, and transparency of fees charged by Canadian banks.

Key messages:

• FCAC will review fees charged by banks and other federally regulated financial institutions, including electronic fund transfer and ATM fees.
• FCAC will apply a consumer protection and consumer education lens to this study, which will support the Department of Finance’s focus on improving competition and innovation in the banking sector, including better understanding the relationship between banking fees and competition.
• FCAC will provide an update on this work in fall 2026.

If pressed on setting of fees:

• FCAC does not oversee the setting of fees, including electronic fund transfers fees or credit card transaction fees. These are business decisions by the entities offering this service.
• FCAC’s Account Comparison Tool enables Canadians to compare the features and costs of hundreds of chequing and savings accounts from different banks and credit unions, including the fees charged for electronic fund transfers.
• FCAC’s role is to supervise banks’ compliance with their obligations to disclose fees, including for electronic fund transfers.

Supplementary information:

FCAC advances the rights and interests of consumers by conducting research, developing evidence-based analysis and advice on emerging issues, and contributing to policy development.

In-scope fees include those associated with personal retail banking accounts (i.e. account fees), such as fixed monthly account fees, overdraft, ATM (in/out-of-network, cash withdrawal), electronic fund transfers, paper statements, account closures and switching, and dormant account fees.

FCAC’s study will rely on federal engagement (e.g., Bank of Canada, Competition Bureau), data gathering through consumer surveys, data providers and industry, and environmental scans.

Behavioural finance credit card debt study

Issue:

To support the Agency’s financial literacy mandate, FCAC conducted a behavioural finance study that explored ways to encourage consumers to pay down credit card debt faster.

Key messages:

• The findings of FCAC’s credit card debt study can be used by both consumers and stakeholders to promote better financial well-being through lower credit card debt.
• Using a 5-minute online quiz, FCAC was able to “nudge” financial consumers toward reducing their credit card debt or paying it off altogether.
• Using this approach, results show that the intervention group reduced their credit card balances by 35% more than the control group over the study period. .
• The results of this behavioural finance study will be published in April 2026.  

Buy now, pay later plans

Issue:

As part of our mandate, FCAC monitors and conducts research on trends and emerging issues that affect financial consumers, including buy now, pay later plans.

Key messages:

• The BNPL marketplace is complex and largely operating within provincial and territorial jurisdiction.
• FCAC has done some limited research on BNPL to broaden our understanding of the BNPL landscape in Canada.

If pressed on future plans for studying bnpl services

• Other members of the financial ecosystem have published research on BNPL: Payments Canada focus on payment trends every year and Option Consommateurs (2023) have also published research on BNPL use in Canada.
• In November 2025, FCAC began tracking BNPL debt through its Monthly Financial Well-Being Monitor. The results will be added to the publicly available dashboard soon.

Supplementary information:

The research was a pilot study, and the findings are not representative of Canadians overall.

FCAC oversees banks’ compliance with consumer provisions in federal legislation and regulations, such as requirements related to disclosure, minimum grace periods, and express consent, that could also apply to loans that federally regulated financial institutions provide as a BNPL product.

Payday loans

Issue:

As part of our mandate, FCAC monitors and conducts research on trends and emerging issues that affect financial consumers, including payday loans.

Key messages:

• Payday loan providers are regulated at the provincial/territorial level.
• FCAC monitors and conducts research on trends and emerging issues that affect financial consumers, including payday loans.
• The goal of this research was to broaden understanding of the payday loan landscape in Canada and to help inform regulation, policy development, financial industry practices, and financial literacy initiatives.
• These findings informed updates to our Canada.ca consumer information to better help Canadians understand these products.

Supplementary information:

Reliance on payday loans can stem from barriers to mainstream banking and ultimately trap users in debt cycles and further limit the quality of their access to financial products and services.

Our research revealed that groups such as newcomers to Canada, lone parents, individuals with disabilities, racialized Canadians, renters, and low-income households are most likely to use payday loans.

Payday loan users face greater challenges than non-users across many behavioural indicators of financial well-being. For example, they are more likely to borrow to buy food, be behind on bills, not have emergency funds

However, not all payday loan users face the same financial challenges, which means financial products and services that are tailored to individuals’ financial well-being are needed.

Bank sales practices review

Issue:

FCAC’s 2018 review of Domestic Bank Retail Sales Practices found the big 6 banks prioritized sales, which increased risks to consumers.

Key messages:

• FCAC found that retail banking culture was focused on selling products and services, increasing the risk that consumers’ interests are not given the appropriate priority. Incentives such as sales targets increased the risk consumers being sold products that did not match their financial needs.
• The review contributed to the development of the Financial Consumer Protection Framework in the Bank Act; many of its more than 60 provisions address sales practices and reduce consumer risk (in force 2022). For example, banks must:
  • offer and sell products or services that are appropriate for consumers’ financial needs
  • send electronic alerts to help their customers avoid going into overdraft or spending over their credit limit, which can result in fees
• • The Framework was an important milestone for consumer protection in Canada because it places a greater responsibility on banks to focus on the financial outcomes of their customers.

Supplementary information:

The review focused on the sale of retail banking products and services such as bank accounts and credit products. These fall under FCAC’s supervision mandate.

FCAC did not review the sale of investments, which are under provincial and territorial jurisdiction.

FCAC addressed breaches of market conduct obligations identified during the review through its enforcement tools. All the deficiencies we identified have since been corrected.

Annex A – FCAC initiatives to help indebted Canadians

Annex B – FCAC initiatives to help vulnerable canadians

Annex C – Complaint handling

Issue:

Consumers have the right to complain to their banks when they have problems. Any consumer expression of dissatisfaction is a complaint.

Key messages:

• Effective and timely complaint handling is a cornerstone of trust in our financial system.
• Banks are required to resolve complaints within 56 days and to support consumers throughout the process.

If pressed on misinformation regarding “unresolved” complaints:

• I welcome the opportunity to clarify some inaccuracies in the media article mentioned.
• That number represents 3 years of data from FCAC’s Consumer Information Centre, which responds to an average of 9-10K enquiries per year.
• FCAC responds to every enquiry received.
• We provide clear, unbiased information about Canadians’ financial rights and responsibilities. We can help consumers understand their bank’s complaint handling process and advise them on how to escalate their complaint to OBSI if they are unsatisfied with how their bank dealt with the issue.
• Issues that fall within our mandate are referred to the supervision team for additional review.

If pressed on banks’ obligations:

• Banks must have procedures for handling complaints and must help their customers with the process.
• Consumers can escalate their complaint to the external complaints body for an independent and impartial review if they are dissatisfied with their bank’s response.
• FCAC supervises banks’ complaint-handling procedures, and the external complaints body. The Agency does not resolve individual complaints.

If pressed on fcac’s role:

• FCAC also supervises the external complaints body, OBSI.
• FCAC’s Consumer Information Centre responds to all enquiries and helps consumers find and understand their bank’s complaints process.
• Consumer complaint data reported by banks to FCAC helps to monitor trends and emerging issues and identify areas of potential concern.

Supplementary information:

Expanded definition of complaint

Any consumer expression of dissatisfaction about a product or service that is offered, sold or provided by the institution must be treated as a complaint.

Timeframe for dealing with complaints

Banks must deal with complaints within 56 days from receipt.

• 97% of reportable complaints in the first quarter of the 2025-26 fiscal year were handled within 56 days (year-over-year improvement since the 2022-23 fiscal year: 86%; 95% in 2023-24; 96% in 2024-25).

While improving, FCAC supervises banks’ full adherence to legislated timeframes and is working with entities to bring them into compliance.

Substantive written response

When a complaint is resolved, banks must provide the complainant with a written response outlining the final decision and any offer from the bank.

Complaint handling requirements for banks

Examples - banks must:

• provide consumers information about their CHP
• treat all expressions of dissatisfaction as complaints
• deal with complaints within 56 days
• provide consumers a written response to their complaint
• inform consumers of their right to escalate complaints to the external complaints body, OBSI
• submit reportable complaints data from consumers to FCAC

Complaint data banks report to fcac

• In 2024–25, FCAC received nearly 269,000 reportable complaints from regulated entities.
• Complaint information can provide insights into potential areas that may benefit from additional supervision, policy, regulations, research and consumer education resources.
• Accounts and credit cards are the products most frequently complained about to banks, however the reportable complaints data is not an indicator of household debt.

Consumer information centre data

FCAC receives questions and enquiries on a wide range of topics, including:

• Merchant rights: Inquiries from businesses about the information that payment card service providers must disclose to them.
• Procedural assistance: How to submit a formal complaint to a financial institution.
• Banking operations: Questions about bank branch closures, changes in service, or branch relocations.

FCAC reviews the information it receives directly from consumers to determine whether it is within the scope of FCAC’s supervision mandate.

Most enquiries are outside of our supervision mandate. For example:

In 2023–2024, FCAC received 6,772 questions and enquiries. Of these, only 283 related to consumer protection measures that we oversee.

Issues that fall within our mandate are referred to the supervision team for additional review.

Annex D: Past review on HELOCs

Issue:

FCAC published a review of industry practices regarding home equity lines of credit (HELOCs) in 2017. Committee members may inquire about current trends on these subjects and their relation to household debt.

Key messages:

• CAC periodically reviews industry practices in specific areas as part of our mandate to monitor and evaluate financial trends and emerging consumer issues.
• The goal of this research was to broaden understanding of the HELOC landscape in Canada and to help inform regulation, policy development, financial industry practices, and financial literacy initiatives.
• Our 2017 report revealed that HELOCs can increase the risk of over‑borrowing, especially when combined with mortgages, despite offering low interest and flexible payments.
• The findings from our review raised awareness about this complex financial product. Since it was published:
• FCAC conducted a consumer awareness campaign and developed information for consumers on Canada.ca to better help Canadians understand HELOCs.
• The Financial Consumer Protection Framework in the Bank Act (2022) introduced new and enhanced provisions around disclosure, appropriate products, tied selling, and express consent.
• Statistics Canada reports publicly on OSFI’s data on HELOCs.
• The Bank of Canada now reports on HELOC use in its annual Financial Stability Report.

Supplementary information:

The Office of the Superintendent of Financial Institutions (OSFI) sets out requirements for federally regulated financial institutions related to HELOCs as part of its mandate for prudential supervision.

FCAC monitors Canadians’ use of HELOCs through its Monthly Financial Well-Being Monitor Survey, which asks participants whether they have a HELOC balance.

Annex E: Past review on auto loans

Issue:

FCAC published a review of industry practices regarding auto finance in 2016. Committee members may inquire about current trends on these subjects and their relation to household debt.

Key messages:

• The auto finance marketplace is complex, and many providers operate outside federal jurisdiction.
• FCAC periodically reviews industry practices in specific areas as part of our mandate to monitor and evaluate financial trends and emerging consumer issues.
• The goal of this research was to broaden understanding of the auto finance landscape in Canada and to help inform regulation, policy development, financial industry practices, and financial literacy initiatives.
• Our 2016 report found that long‑term car loans—typically six to eight years—were becoming increasingly common. While these loans lowered monthly payments, they substantially increased the total interest paid and exposed consumers to the risk of negative amortization.
• Our review informed our engagement with provincial and territorial partners and reinforced expectations that federally regulated lenders comply with federal auto‑loan requirements.

Supplementary information:

FCAC does not have any more recent research on these products.

Annex F – Committee member profiles

Annex G – Areas outside fFCAC’s mandate

Issue:

FCAC’s mandate is to supervise federally regulated financial entities and strengthen the financial literacy of Canadians.

Key messages:

• Oversight of Canada’s financial system is shared between federal, provincial and territorial regulators.
• The following fall outside the federal Financial Consumer Protection Framework:
  • Issue: Setting fees
  • Jurisdiction / Responsibility: Banks (Business decision)
  • Notes: *FCAC oversees the Low Cost No Cost Account Commitment and the $10 NSF Fee Cap

Issue: Setting fees

Issue: Setting interest rates

Issue: Amount of credit extended to a consumer

Issue: Securities

Issue: Credit bureaus

Issue: Fintechs

Issue: Payday loans

Issue: Buy-Now-Pay-Later (BNPL)

Issue: Tracking mortgage debt

If pressed on fcac’s research outside our jurisdiction

• FCAC advances the rights and interests of consumers by conducting and publishing research on trends, opportunities and emerging issues that impact how consumers interact with financial products and services (including those that fall outside our current regulatory oversight).
• This work helps to inform and shape our supervision and financial literacy activities, those of our partners, and to inform policy advice that strengthens consumer protections and supports improved financial outcomes for Canadians.

Annex H: Legislation, regulation, codes of conduct and public commitments overseen by FCAC

Acts

• Bank Act
• Cooperative Credit Associations Act
• Insurance Companies Act
• Trust and Loan Companies Act
• Payment Card Networks Act

Regulations

• Financial Consumer Agency of Canada Act Regulations
• Bank Act Regulations
• Insurance Companies Act Regulations
• Trust and Loan Companies Act Regulations
• Co-operative Credit Associations Act Regulations

Codes of Conduct

• Code of Conduct for the Delivery of Banking Services to Seniors
• Code of Conduct for Federally Regulated Financial Institutions: Mortgage prepayment information
• Canadian Bankers Association: Code of Conduct for Authorized Insurance Activities
• Canadian Code of Practice for Consumer Debit Card Services
• Code of Conduct for the Payment Card Industry in Canada
• Canadian Bankers Association: Model Code of Conduct for Bank Relations with Small- and Medium-Sized Businesses
• Principles of Consumer Protection for Electronic Commerce: A Canadian Framework

Public Commitments

• Canadian Bankers Association: Commitment to Provide Information on Mortgage Security (2014)
• Canadian Bankers Association: Commitment on Powers of Attorney and Joint Deposit Accounts (2014)
• Canadian Bankers Association: Commitment on Modification or Replacement of Existing Products or Services (2012)
• Canadian Bankers Association: Guidelines for Transfers of Registered Plans 
• Commitment on Low-Cost and No-Cost Accounts
• Canadian Bankers Association: Online Payments
• Plain Language Mortgage Documents CBA Commitment