Your credit card comes with legal protections you never signed up for and might not know about. Canadian law already says your bank can't raise your limit without asking you, can't make you pay more than $50 for fraud, and must answer your complaint within 56 days.
Here are five rights every Canadian cardholder should know, what each one means in real life, and where it comes from.
Cardholder: the person whose name is on the credit card account.
Federally regulated bank: a bank overseen by the Government of Canada. Most of the rights below apply to these banks. If you're not sure whether your card issuer is one, ask it.
Right 1: Your bank can't raise your credit limit without your "yes"
A federally regulated bank "must also get your express consent before raising your credit limit," according to the Financial Consumer Agency of Canada (FCAC). If you agree over the phone, the bank must confirm the change in writing.
What this means for you: a higher limit can't just appear on your account. If you're trying to control your spending, you can say no. If your limit went up and you don't remember agreeing, call your bank and ask when and how you consented.
Related right: 30 days' notice of changes. When your bank changes things like your interest rate or fees, it must tell you in writing at least 30 days before the change takes effect (FCAC).
Credit limit: the most you're allowed to owe on your card.
Express consent: a clear "yes" from you, spoken or written. Staying silent doesn't count.
Right 2: No over-limit fee just because a hotel or gas station put a hold on your card
Since January 1, 2010, federally regulated banks "may not charge over-the-limit fees due to a temporary hold of funds on your credit card" (FCAC).
What this means for you: businesses such as hotels, car rental companies and gas stations may reserve money on your card before the final bill. If that hold alone pushes you over your limit, you can't be charged an over-limit fee for it.
The catch: the protection doesn't apply if your purchase itself takes you over the limit while the hold is in place.
Hold: money a business reserves on your card for a short time, before it charges you the final amount.
Over-limit fee: a charge some cards add when your balance goes above your credit limit.
Right 3: A due date on a weekend or holiday gives you until the next business day
If your payment is due on a weekend or a public holiday, you can pay on the next business day and it still counts as on time, according to the FCAC.
What this means for you: no late mark and no lost grace period just because the calendar was against you.
Still, don't cut it close. Payments are processed Monday to Friday, so paying a few days early is the safest habit.
Business day: a weekday (Monday to Friday) that isn't a public holiday.
Grace period: the interest-free time between your statement date and your due date, if you pay the full balance.
Right 4: If someone uses your card, you owe $50 at most, and often $0
"Your maximum liability, by law, is $50" for charges you didn't make, according to the FCAC. It gets better:
- Zero liability from the card networks. Visa, Mastercard and American Express have committed not to hold you responsible or charge fees for unauthorized transactions (FCAC).
- $0 after you report it. Card companies must tell you that you won't be liable for unauthorized use after they receive your report that the card was lost or stolen (Financial Consumer Protection Framework Regulations).
- The exception: the $50 limit doesn't apply if you were grossly negligent (same regulations).
What this means for you: report a lost card or a strange charge the moment you notice it. The sooner you report it, the sooner you're protected.
Unauthorized transaction: a charge on your card that you didn't make or approve.
Liability: the amount you're legally responsible for paying.
Gross negligence: being extremely careless, for example writing your PIN on the card.
Card network: the company whose logo is on your card (Visa, Mastercard, American Express). It runs the payment system the card uses.
Right 5: An independent referee if your bank won't fix a problem
Since November 1, 2024, one independent body handles unresolved complaints about federally regulated banks: the Ombudsman for Banking Services and Investments (OBSI) (FCAC).
How to use it:
- Complain to your bank first. Keep notes: dates, names, and what was said.
- Wait up to 56 days. If the bank hasn't resolved it by then, or you're unhappy with its answer sooner, take it to OBSI.
- OBSI has 120 days to give you a final written recommendation.
The FCAC supervises how banks handle complaints, but it doesn't settle individual disputes (FCAC).
Ombudsman: an independent person or office that looks into complaints and recommends a fair fix.
FCAC (Financial Consumer Agency of Canada): the federal agency that makes sure banks follow consumer protection laws.
Your credit card rights checklist
Screenshot this list and save it:
- No limit increase without my "yes". If you agree over the phone, the bank must confirm it in writing.
- 30 days' written notice before changes to my rate or fees take effect.
- No over-limit fee caused only by a temporary hold.
- A weekend or holiday due date moves to the next business day.
- $50 maximum for fraud, and $0 after I report a lost or stolen card. Visa, Mastercard and American Express have committed to zero liability.
- Unresolved complaint? Bank first, then OBSI after 56 days.
This article is for general information only and isn't legal or financial advice. Your cardholder agreement has the details for your specific card.