Canada’s financial consumer watchdog is warning lenders not to take advantage of mortgage holders who are facing severe financial stress as interest rates and the cost of living rise.
In guidelines released Wednesday, the Financial Consumer Agency of Canada said financial institutions need to help provide support to consumers who are facing rising mortgage payments.
It said mortgage holders with variable-rate loans have faced a higher cost of borrowing as interest rates have marched higher, while those with fixed-rate loans have faced increased costs as their mortgages come up for renewal.
“FCAC’s research shows that homeowners with a mortgage are increasingly at risk of experiencing financial hardship, such as having to increase their borrowing for daily expenses or to draw on their savings,” said Frank Lofranco, deputy commissioner of supervision and enforcement for the agency.
Lofranco told reporters that the federal watchdog expects financial institutions to proactively monitor and contact consumers who are at risk in order to provide appropriate relief measures based on individual needs and circumstances.
He said the guidelines are meant to ensure institutions “adopt fair and consistent approaches” when offering relief to consumers at risk of defaulting on their mortgage for their principal residence.
The FCAC said it is not recommending any specific measures, but said lenders should be guided by the principles of fairness, appropriateness and accessibility.
However, it said it expects financial institutions to consider relief measures including waiving prepayment penalties, waiving internal fees and costs, not charging interest on interest and extending amortization for the shortest period possible.
It said lenders should avoid taking advantage of borrowers at risk who are renewing their mortgages by offering less advantageous rates based on their inability to adjust their mortgage credit agreement or switch to other lenders.
Lofranco said the agency would monitor financial institutions’ level of compliance with the expectations it set out, which call for banks to report back on the measures they’ve put in place.
“There may be circumstances where we are not satisfied with how an institution is complying and in those cases, we will increase the intensity of our regulatory oversight and work with that institution to solve the problem,” he said.
“If enforcement action is necessary because we’ve seen there to be a violation of a consumer protection set out in legislation and regulation, we will pursue that appropriately and, where warranted, undertake enforcement action.”
Lofranco said that in cases where a consumer has concerns about how they were treated, they can pursue recourse through a complaint handling procedure that banks are obligated to follow.
“We have a lot of confidence in financial institutions adhering to the guidelines,” he said, noting they take effect immediately.
No end date was attached to the guidelines, as the FCAC will “monitor the economic environment and adjust our regulatory approach as appropriate,” said Lofranco.
The Canadian Bankers Association, which represents more than 60 domestic and foreign banks operating in Canada, said in a statement that it is reviewing the new guidelines to assess their impact on current practices.
Spokeswoman Laurie Lupton said Canadian banks already work with customers at risk to offer advice and measures to help keep their mortgages in good standing.
“Banks adhere to responsible lending practices and maintain high standards for risk management. They carefully assess the appropriateness of mortgage products for their customers and comply with requirements established under the Bank Act, existing FCAC guidance and those set by the Office of the Superintendent of Financial Institutions,” said Lupton.
“Canadian banks know the financial well-being of their clients is critically important to the individual, to the health of communities and the economy.”
This report by The Canadian Press was first published July 5, 2023.
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
