The federal government is moving forward with proposed regulations that ban credit-card companies from sending customers unsolicited cheques, one of several measures announced Sunday aimed at protecting Canadian consumers. The move follows a promise made in last year’s federal budget. The government says confusion is caused by these products because often, card users are unaware that such cheques are treated as cash advances: interest charges start accumulating immediately without the usual grace period that applies to card purchases. In response to consumer concerns, the government — as part of the economic action plan 2011 — is issuing proposed legislation banning the distribution of unsolicited credit card cheques,” said Ted Menzies, the minister of state for finance, at the announcement at the Financial Consumer Agency of Canada offices.
