CANADA COMMITTEE SEEKS LOWER CREDIT CARD RATES
The all-party House of Commons Finance
Committee has unanimously called for a "substantial" cut in
credit card interest rates charged by banks and other financial
institutions.
    In a report, the committee recommended that if action is
not taken soon, the government should investigate whether there
is "anti-competitive behaviour" among the banks.
    Minister of State for Finance Tom Hockin told the Commons
prior to the release of the report he favored a cut in the
rates and promised to act quickly on its recommendations.
    The committee said interest rates should be lowered to no
more than the 15.9 pct per annum level announced recently by
the Toronto Dominion Bank.
    Rates on other bank cards range from 18 to 21 pct and to 24
to 28 pct on gasoline and department store cards.
    At a news conference, committee members said they would
call for a legislated rate ceiling if the banks do not take
action quickly.
    "I would be unhappy if they didn't make an announcement
next week," said Committee Chairman Don Blenkarn, also a member
of the ruling Progressive Conservative Party.
    New Democratic Party member Michael Cassidy said, "I hope
the banks see the writing on the wall and take appropriate
action."
    The group did recommend legislation be enacted to ensure a
uniform method of calculating interest on unpaid balances and
that a grace period be allowed for new purchases.
 Reuter
