Earlier today, CIBC announced they would take the first step in dropping interest rates on credit cards.
It’s a relatively small step, covering a limited number of clients, but it’s a good move in the right direction. So far, CIBC is the only bank to move on this issue. Clearly, the others need to follow.
Help us make this happen. Sign our petition that we will send to Canada’s 5 Big Banks asking them to drop interest rates on credit card balances during the COVID-19 pandemic.
Credit card debt is unsecured – which means the lender has nothing to seize in case you default on your credit cards. So interest rates on credit cards are set in order to offset that higher risk. Rates in the 20% range currently charged on credit card debt are still way too high considering how low the default rate is. Less than three per cent of Canadians were more than 90 days behind on their credit card’s minimum payment.
Canada’s banks right now are very strong: they are well capitalized, have a strong financial foundation and are bent on continuing to send out massive profits to shareholders in the form of dividends. Nothing wrong with that – but it does show that they do have room to help out on 20% interest charges on credit cards for a short period of time.
Here’s the CEOs of our five largest banks, and what they earned in 2019. Any business paying their CEOs like this clearly has free cash flow to help out some of its customers in a time of need.
Please sign our petition to help get all of these bank CEOs to drop 20%+ interest rates on credit cards during the COVID-19 pandemic.
Thanks for your interest and support.