7/14/2004 Financial Consumer Agency of Canada provides consumers with current information that enables them to compare credit cards OTTAWA, July 14, 2004 -- Today the Financial Consumer Agency of Canada (FCAC) released an updated version of its popular credit card guide, Credit Cards and You. It incorporates recent changes to interest rates, service fees and other important credit card features such as inactive account charges. "We're committed to keeping Credit Cards and You current and accurate," states FCAC Commissioner Bill Knight. "We've determined that Canadian adults carry an average of 3.1 credit cards in their wallets. This updated guide helps them understand and compare the costs associated with those cards." The updated version of Credit Cards and You contains new information about credit balance insurance, a commonly misunderstood feature of most credit cards. An easy-to-understand booklet describes credit balance insurance and how it is calculated, and highlights the importance of shopping around for this and other types of insurance. It also offers valuable information to help consumers determine whether or not they might benefit from this optional feature. The guide comes in a kit format, so that it can be customized to the needs of individual consumers. In addition to the new fact sheet on credit balance insurance and comparison tables for a variety of cards - from secured to platinum - the complete kit includes: four full-colour booklets with information about: Getting the Most from Your Credit Card — Understanding the terms and conditions Managing Your Money — How to save with a credit card Playing it Safe — How to protect your credit card and credit history Your Rights and Responsibilities — The cost of borrowing with a credit card a worksheet that consumers can use to ensure that they get enough information from financial institutions in order to choose the best credit card at the lowest cost a glossary of key terms used in the kit. This issue of Credit Cards and You compares the key features of more than 200 cards offered by 26 Canadian credit card issuers. It includes, for the first time, information about credit cards issued by Citizens Bank of Canada, a branchless national bank created by VanCity Credit Union. Credit Cards and You is available free of charge. Consumers and other interested individuals or groups can request a copy by calling FCAC toll-free at: 1-866-461-3222 or by visiting FCAC's Web site at: www.fcac.gc.ca. FCAC ensures compliance with the consumer protection laws that apply to banks and federally incorporated trust, loan and insurance companies. FCAC also provides consumers with accurate and objective information about financial products and services, and informs Canadians of their rights when dealing with financial institutions. - 30 - Media contacts: Elizabeth AllenPublic Affairs Officer(613) 941-4316allen.elizabeth@fcac-acfc.gc.ca Brigitte MineaultPublic Affairs Officer(613) 941-4221mineault.brigitte@fcac-acfc.gc.ca Credit Cards and YouHighlights July 2004 Special Features Booklet about credit balance insurance This straightforward booklet describes credit balance insurance and how it is calculated, and highlights the importance of shopping around for this and other types of insurance. It offers valuable information to help consumers determine whether or not they might benefit from this optional feature. Comparison tables for 200 credit cards The guide now compares the key features of 200 credit cards, including, for the first time, information about credit cards issued by Citizens Bank of Canada, a branchless national bank created by VanCity Credit Union. Regular Features Key terms Plain-language definitions of the terms used in Credit Cards and You and the financial services sector. How interest is calculated on credit cards Outlines the two methods credit card companies use to determine whether the interest-free period applies to new purchases. Low introductory rates Outlines how to get the most from low introductory rates. What to do if unauthorized transactions appear on your account Outlines the steps to take if unauthorized transactions appear on your credit card account and tips to protect yourself. Credit card comparison tables These nine tables compare interest rates and other characteristics for Low-Rate, Standard, Student, Retail, Secured, Gold, Platinum, U.S. Dollar and Charge Cards. Service fee comparison tables These two tables compare the fees that are associated with most credit cards, including cash-advance, over-the-limit and currency conversion fees. Financial consumer checklist Includes questions consumers should ask before obtaining a credit card. Tips to help you save money It pays to be a wise consumer. The tips presented here will help consumers become more knowledgeable about credit. Credit Card Facts and Figures - 2003 At the end of 2003, an estimated 74.3 million1 credit cards were in circulation in Canada (down from approximately 76.2 million2 at the end of 2002). This represents 3.1 cards for every Canadian over the age of 18. Of these, 50.4 million were Visa or MasterCard credit cards, and 23.9 million2 were cards issued by large department stores, gas companies and other issuers such as American Express and Diners Club International. At the end of 2003, however, approximately only half of all credit cards in circulation were considered "active," meaning that, at some time during the year, they had activity on their account. The Canadian Bankers Association publishes annual statistics on Visa and MasterCard credit cards3. Highlights are provided in the table below. Similar statistics are not available for retail cards. Visa and MasterCard Credit Card Statistics 2002 2003 Change % Change Number of cards in circulation 49.4 million 50.4 million + 1 million cards + 2% Number of accounts with balances4 20.8 million 22.2 million + 1.4 million accounts + 6.7% Average dollar amount of purchase(s) $100.51 $102.00 + $1.49 + 1.5% Write-offs due to fraud as a percentage of dollar amount of transactions 0.083% 0.080% — - 0.03% Delinquency rate (90 days and over) of outstanding credit card balances 0.7% 0.8% — + 0.1% 1 This estimate only includes institutions listed in this publication. The basis for this estimate may differ from one issuer to another. FCAC gratefully acknowledges the assistance of all card issuers and of the Canadian Bankers Association in compiling this information. 2 This figure was compiled using the number of cards in circulation for all issuers listed in this publication. 3 Source: Credit Card Statistics - Visa and MasterCard, Canadian Bankers Association. Data is as of October 2002 and October 2003. 4 As at the last day of fiscal year-end, including accounts with balances paid off each month.
