OTTAWA, September 30, 2005 -- The Financial Consumer Agency of Canada
(FCAC) is advising consumers to be aware of important changes, effective
today, to the industry code of conduct that outlines practices to protect
Canadians from liability in cases of debit card fraud or unauthorized
transactions.
The debit card code, formally titled the Canadian Code of Practice for
Consumer Debit Card Services, stipulates that under certain conditions,
consumers will not be held liable for unauthorized use of their debit card.
The code has been revised to clarify the procedures for addressing
unauthorized transactions and other transaction problems. Among the changes to
the code are the following:
A new limit has been set for how long the financial institution has to
investigate unauthorized transactions and respond to the consumer. The
financial institution that issued the personal identification number
(PIN) to the cardholder will investigate reports of unauthorized
transactions and respond to the consumer as soon as possible, but
within a maximum of 10 business days.
In cases where the PIN issuer asks for a statement or affidavit
from the cardholder during the investigation, there may be a
temporary suspension of the 10-day time limit until the
financial institution receives the signed statement or
affidavit.
In cases where the PIN issuer decides that not all funds should be
reimbursed to the consumer, the PIN issuer is responsible for showing
that, on the balance of probabilities, the cardholder contributed to
the unauthorized use of the card.
The cardholder must be given information, in writing, on how the
dispute resolution process works if the problem cannot be settled when
the cardholder first complains or if he or she contacts the PIN issuer
to indicate that they have not received a response to their claim.
FCAC will be monitoring banks' compliance with the voluntary code, which
has been agreed to by banks, caisses populaires, and endorsed by Credit Union
Central of Canada.
Banks have also committed to apply the principles of the debit card code
to online payments from consumer deposit accounts. FCAC will be monitoring
this voluntary commitment as well.
For more information on these and other codes of conduct, consumers can
contact FCAC toll-free by calling: 1-866-461-3222. Consumer may also visit the
Consumer Protection section of the Agency's Web site ( 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 and
responsibilities when dealing with federally regulated financial institutions.
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Media contacts:
Martine Bélanger
Communications Officer
(613) 941-8982
belanger.martine@fcac.gc.ca
Christina McDonald
Communications Officer
(613) 941-4168
mcdonald.christina@fcac.gc.ca
