Bank of Nova Scotia, Toronto-Dominion Bank, Royal Bank of Canada, National Bank of Canada and Canadian Imperial Bank of Commerce said on Friday they are cutting interest rates on credit cards to provide relief to customers affected by COVID-19 pandemic.
Late on Friday, Scotiabank said it would reduce credit card interest rates to 10.99 per cent for personal and small business clients who have been approved for, or seek, payment deferrals.
Earlier, in separate statements, TD Bank said it will cut credit card interest rates by 50 per cent for customers experiencing hardship, and Royal Bank said it will reduce the charges by the same extent for clients receiving minimum payment deferrals.
National Bank will allow credit card customers to defer minimum payments for up to 90 days and reduce annual interest rates to 10.9 per cent for these clients, it said.
CIBC too will reduce interest rates to 10.99 per cent on personal credit cards for users who request to skip a payment, Canada’s fifth-largest lender said.
Most Royal Bank, TD, Scotiabank and CIBC credit cards charge 19.99 per cent interest on purchases. Most National Bank cards charge 20.99 per cent.
Last week, Prime Minister Justin Trudeau said his government had urged banks to help alleviate the burden credit card interest rates placed on Canadians. Friday’s moves are the latest in a raft of measures announced by the banks to ease the impact of the coronavirus pandemic on customers.
Canada’s six biggest banks unveiled a mortgage-relief plan two weeks ago to allow homeowners to defer or skip mortgage payments for up to six months as businesses come to a grinding halt due to the pandemic.
National Bank said it will refund additional interest accrued on the deferred mortgage payments. The lender will also waive fees for transfers and stop payments on checks and pre-authorized debts, and will not charge overdraft fees on checking and high-interest savings accounts, it said.
Since the mortgage-relief plan was announced, the banks have received nearly half a million requests that have been completed or were being processed.
© Thomson Reuters 2020