CIBC, RBC cut credit card rates to give relief to customers amid COVID-19 pandemic

cibc - CIBC, RBC cut credit card rates to give relief to customers amid COVID-19 pandemic

Canadian Imperial Bank of Commerce and Royal Bank of Canada said on Friday it was cutting interest rates on personal credit cards to provide relief to customers as the economic fallout from the COVID-19 pandemic deepens.

Credit card users who request to skip a payment will get a temporary lower annual rate of 10.99 per cent, Canada’s fifth-largest lender said in a statement.

It was not immediately clear what the interest rates were earlier.

RBC said it would reduce interest rates on credit cards by 50 per cent for clients facing hardship due to COVID-19.

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.

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

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