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

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

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

No one hurt in Maple Bay Road fire

Fire under investigation

North Cowichan to police popular trails to ensure physical distancing

“You can expect delays accessing Mount Tzouhalem, or even to be turned away.”

Duncan’s Pat Kay copes with Olympic roller-coaster

‘Confusing time’ as Canada pulls out due to COVID-19, followed by IOC postponement

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

List of cancelled Cowichan Valley community events

An ongoing list of events that have been cancelled in the Cowichan Valley due to COVID-19

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

B.C. health officer says homemade masks may prevent spread of COVID-19 to others

Practising physical distancing, frequent hand washing and resisting touching your face are proven methods

Most Read