Credit Unions to Cut Credit Card Interest Charges: Move Designed to Help Members Facing Hardship Due To COVID-19April 9, 2020
Toronto, ON – Canada’s Credit Unions are introducing new relief measures designed to help qualified credit cardholders affected by COVID-19, across 214 credit unions. As part of the new relief measures, a significantly reduced interest rate of 10.9% will be offered to business and prime cardholders. The reduced rate, which takes effect April 13, is being offered for up to six months with eligibility being decided on a case-by-case basis. Credit Unions, already offering low interest rates to card providers, are now making the additional cut of nearly 50% to further help those who have been impacted by the virus.
“As Canadians are struggling to manage their finances during these difficult times, credit unions and their partners are working to offer solutions that deliver relief from the hardship caused by the virus. Through this new financial relief initiative, credit union cardholders will now have access to lower interest rates in addition to other important relief measures,” said Martha Durdin, President and CEO of the Canadian Credit Union Association. “Credit unions have a long history in Canada of helping their members and as this crisis has unfolded, they continue to encourage members to get in touch if the crisis is making meeting financial obligations challenging,” Ms. Durdin added.
Credit Unions and Collabria Financial – an independent entity providing Canada’s credit unions with credit card services – had already taken steps earlier in March to help credit union cardholders by offering minimum payment deferrals for up to six months. Additionally, they introduced an “emergency temporary credit limit increase’ created to extend the limit for cardholders outside of Canada who were actively working to return to Canada. Through this offering, a Canadian family stranded abroad was able to get an immediate increase on their credit card, which enabled them to return to Canada.
*For more information about the different services being offered including the reduced interest rate, cardholders should contact the Cardholder Service Call Center listed on their credit card to discuss eligibility for the relief program. And, for other financial programs covering loans and mortgages, credit union members should contact their credit union.
About Canadian Credit Union Association
Canadian Credit Union Association is the national trade association for Canada’s credit unions and caisses populaires outside Quebec. These financial institutions offer a full range of retail banking services to over 5.8 million Canadians. Collectively Canada’s over 230 credit unions generate over $6.5 billion in economic impact, are leaders in small business lending, and have assets of over $247 billion. To learn more about the credit union difference and find a credit union near you, visit www.ccua.com.
Canadian Credit Union Association
647-327-8099 or 416-592-0696