Media Mentions

Experts baffled over Canada credit card probe — PaymentsCompliance

Feb 16, 2017 2 MIN READ

Osler partner Kashif Zaman says there is “no evidence of widespread abuse by banks” in terms of non-consensual credit card issuance in Canada, in response to an official investigation being launched into such activities by a regulator that warned Canadians to be “cautious and aware” of their rights, as outlined in an article in PaymentsCompliance.  In his article, author Jimmy Nicholls explains how the Financial Consumer Agency of Canada (the FCAC) issued a bulletin to consumers warning them of “misleading” practices relating to credit card sales. The article also explains how this is causing consternation among legal experts, including Kashif — a partner in Osler’s Financial Services Group — who says there is little evidence to warrant such an investigation.

“There is no legal ambiguity — banks are strictly prohibited from issuing credit cards without their consent,” Kashif tells PaymentsCompliance. “In terms of enforcement, it is hard to say that it is lax. There is no evidence of widespread abuse by banks in this area.”

Kashif also says issuing banks that want to maintain compliance while working with third parties also need to be mindful of the rules to protect their interests.

“The companies should make it very clear to the third parties on what is permitted versus prohibited, [and] third parties should be monitored for compliance,” Kashif tells PaymentsCompliance.

“There should be contractual penalties if third parties do not comply, and third parties should not be financially motivated simply based on the number of credit cards issued through them.”

If you subscribe to PaymentsCanada online, find out more by reading Jimmy Nicholls’ full article “Experts baffled over Canada credit card probe.”