The province of Quebec has instituted new rules on minimum credit card payments.
The new rules require banks to set a minimum payment of at least 2% of the balance owing starting August 1. It will eventually rise to 5%. The new rules apply only to credit cards used by Quebec residents.
Quebec's government passed the law in 2017, but it comes into effect on August 1 of this year. It is intended to counter rising household debt by making people pay off more than just accumulated interest
Banks have the option of raising the minimum payment rate to 5% right away, but few are expected to do so. There are no federal rules about minimum credit card payments, but there is nothing preventing Canada’s provinces from coming up with their own repayment regulations.
