From:	XXXX
Sent:	December-18-13 6:39 PM
To:	Consumer Code / Code consommateur
Subject:	Pre-Paid Credit Card Fees

Dear Ministry of State for Finance, 
 
Recently I saw an opportunity for public response extended regarding a consultation process by 
your Ministry on behalf of the Government of Canada regarding possible changes concerning the 
fee charges for pre-paid credit cards (gift cards) by financial institutions that include banks.  
 
I think this is good news and wish to add my comments for purchased pre-paid credit cards that 
its customers as consumers of products bought either on-line or directly with businesses that will 
honour these cards as follows: 
 
(1) I have always had concerns about money losses incurred as a result of imposed expiry dates 
for cards by banks or other financial sources. It's difficult for consumers always having to try to 
keep up-to-date or aware of the expiry dates and so the consumer loses money when the card is 
not always used up by the expiry date 
 
(2) The problem with expiry dates is that when one gets close to the limit value there is a small 
amount that is difficult to use up so if one can't find a financial cost item that matches or almost 
completely uses up the amount the card expires again and the remaining unspent amount 
probably goes back to the bank or is simply lost. Some vendor sources will not allow a purchase 
on a card for that small amount remaining on that card. My bank will not allow the card to be 
refilled with new money so this reduces how the bank customer can used the bank amount in 
full. 
 
(3) Because of item (2) I have have had a large number of old cards that have expired with no 
money left in them but I have to keep track of them. It can get tricky because if a company sold 
me a product that it has charged and cashed in from that card, it is quite possible when a product 
was found subsequently no longer available such as being discontinued that the company might 
reimburse me at a later date on the original card that might then have an expiry date on it. Some 
vendor companies do not cash in their charge amount on the card until the product has yet 
confirmed that the product can be delivered but this impacts on the card due to the time that 
lapsed for when the amount has been charged to the card  
 
(4) When the card gets to the expiry date the rule by my bank is that for the unspent or remaining 
amount for each month thereafter a fee administration is applied (to me this is a penalty fee), i.e, 
it is taken off each month until there is no money left on the card 
 
(5) For each card my bank charges a fee of $4.95 regardless of how many cards I buy. While I 
can appreciate that the bank informs that this is an "administration fee", this is irritating since its 
all done automatically by computer anyway and seems overly costly and unnecessary. I always 
wished there was some type of reduced charge or charge that can be waived for the new card fee 
charge if X number of cards were purchased after a certain period of time.  
 
(6) Security is a critical issue when anyone has to buy products on-line. This is the sole reason I 
buy pre-paid cards. By using such a card I know ahead what amounts I am prepared to lose if 
something goes wrong. Despite financial institution claims that they build security measures into 
their systems, including on their pre-paid credit cards, I am adept and know enough about 
computer operations, user errors and Internet technology and prowlers to know that there is 
always a risk when doing financial business on the Internet. For these reasons I refuse to use my 
regular credit card on the Internet and will not set up access to my main bank credit account or 
my main account altogether so will myself do not make direct utility payments on the Internet   
 
(7) Certain types of fee charges and all expiry dates for pre-paid cards should be removed by law 
similarly as occurs by Alberta, Quebec and Saskatchewan for expiry dates that are not allowed 
for calling cards. My home province, which is not Alberta, does not have such a law for calling 
cards but I feel these should be legislated federally like pre-paid credit cards if this can be done 
with pre-paid credit cards. Calling cards should not have to depend on provincial or territorial 
governments to take action.  The recourse I am considering is to write to my home province's 
finance ministry to urge similar legislation about calling cards. 
 
It is frustrating to have to deal with the above question of pre-paid credit cards expiry date issues 
and various fees that can exist. The bank customer strikes as being at the mercy of the banks and 
an instance of being victimized. At the same time this is surprising, unfortunate and puzzling as 
this practice discourages the bank's own customer members from buying these credit card 
products thereby discouraging their customer members from spending from their bank accounts. 
When the banks own customers do not spend this lessens that much need for a bank account.  
 
I have seen more and more products as a consumer that can no longer be bought in person. When 
this happens this places the seniors, more old tradition and less well off populations at a 
disadvantage as they are usually not knowledgeable and not prone to go for technology change. 
If one is conservative by nature the person is uncomfortable about having to become a consumer 
through Internet purchasing trends. The seniors and less well off population sectors cannot afford 
technologies that are costly. 
 
As a rule I refuse as part of my human nature of my many years as a consumer to make any 
changes to the way I spend my money if and where this is possible. I buy only from venders 
through person to person purchases and not by on-line Internet means and will make on-line 
purchases only through lowest limit amount pre-paid credit cards. I do so only because more and 
more face-to-face stores are unfortunately disappearing. Because of my age I now am from an 
older generation population. I feel so sorry for all the other older generation persons that do not 
know how to buy on-line or are more vulnerable or susceptible to becoming a victim due to 
technology.     
 
Thank you for the opportunity so that the above input toward changes to help the consumer. 

XXXX