Ottawa seeking lower credit card interest rates amid COVID-19 crisis

Lower-interest credit could be made available for Canadians

The federal government is asking banks and credit-card companies to lower interest rates on Canadians struggling financially because of the COVID-19 pandemic.

Prime Minister Justin Trudeau says the government is also looking at extending lower-interest credit directly to consumers.

The Bank of Canada has slashed its trend-setting interest rate to try to cushion the blow to business from a slowing economy, but credit-card interest rates, the ones that matter most directly to most consumers, remain high.

Speaking at his Ottawa residence this morning, Trudeau says Finance Minister Bill Morneau is in talks with major banks about doing things to narrow the gap.

“We recognizes they are a significant challenge for many Canadians at this point,” Trudeau said.

“We are looking at making credit more available and less expensive for Canadians to make it for the next few months.”

He says the government is spending billions on programs to help individuals pay their bills over the next few months as the novel coronavirus forces people out of work due to illnesses and enforced closures.

He says lowering the costs Canadians have to pay as they rely on borrowing to cover their expenses is another part of the effort.

– with files from Katya Slepian, Black Press Media.

More to come.


@katslepian

katya.slepian@bpdigital.ca

Like us on Facebook and follow us on Twitter.

CoronaviruseconomyJustin Trudeau

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

COVID-19: Daily update on the pandemic in Surrey, White Rock and beyond

APRIL 2: Six new COVID-19 deaths: provincial health officer

Thousands of ‘PPE’ donated in Surrey, where one care home is ‘preparing for the worst’

SafeCare BC’s Operation Protect drive involves drop-off dates in Guildford

Psychologist’s advice on parenting in the pandemic

SFU psychology prof Dr. Tanya Broesch, with expertise in child development, discusses short and long-term impacts COVID-19 pandemic is having on children and parents alike

‘Shocking decision’: Surrey soccer club won’t offer refunds to 350 teams for cancelled tourney

Registration fees would top $171K for Surrey Mayor’s Cup, postponed due to COVID-19

Bayside rugby director makes pitch for season shift

Andy Blackburn suggests COVID-19 cancellation could be impetus for BC Rugby change

Trudeau rejects mandatory stay-at-home order for now; COVID deaths up

The virus has now infected more than 10,000 Canadians and cost 130 their lives

B.C. health care workers gain access to virtual health care options

During COVID-19 many clinics have closed, leaving health care workers with nowhere to turn

Tax collectors, auditors to help field ‘historic’ numbers of benefit-seeking callers

‘If you work for CRA, people think we are just there to take money from your pockets.’

Cowichan couple won’t self-isolate after returning from overseas

New law requires 14 days of self-isolation when returning to Canada

Family uses social media to help truckers find places to eat during pandemic

Restaurants Serving Drivers in Western Canada seeks to provide a list of places open for drivers

Advocates sound alarm over COVID-19 limiting access to contraceptives, abortion

The COVID-19 outbreak has hit sexual-health services from almost every angle

Abbotsford man who tries to start gas-station fight gets sprayed with gasoline

Suspect returns with knife and throws it at victim, but is quickly arrested by police

Abbotsford family of 5 who was stuck in Vietnam is now back home

Janzen family sends ‘huge and heartfelt’ thank you to everyone who helped

Most Read

l -->