Federal Government Takes Aim At NSF Fees

Following a consultation period between the government, consumer groups and the banks, the federal government has acted on a 2023 budget commitment to "crack down on junk fees" through proposed amendments to the Financial Consumer Protection Framework Regulations (FCPFR), which would cap NSF fees at $10 and require a three-hour pre-notification period before an NSF fee can be charged. The amendments would also prohibit the imposition of NSF fees on overdrawn amounts of under $10, and on persons who have been charged an NSF fee within the last 72 hours.

What you need to know

• The proposed amendments would cap non-sufficient funds (NSF) fees at $10, and prohibit the imposition of NSF fees on overdrawn amounts under $10 and on persons who have been charged an NSF fee within the last 72 hours.