THE TRUE COST OF JUNK FEES FOR CANADIANS
Junk Fees
New insights suggest Canadian policymakers must reignite conversations about junk fees in financial services and address them head on.
Junk fees are harming Canadians’ trust (and budgets)
Junk fees are everywhere—from inflated airfare to drip pricing in online retail to hidden fees in everyday banking. And Canadians are feeling the pinch. While the federal government introduced measures to address junk fees in its 2023 Budget, these failed to capture the broad swath of unnecessary junk fees that impact everyday Canadians. Not to mention, there has been no further action since.
New research has found that as Canadians become more aware of junk fees, they are changing how they budget, where they spend their money and what they purchase. Trust and consumer choice are shifting as a result of these fees, especially in financial services.
Financial services are part of Canadians’ day-to-day lives — but junk fees don’t have to be.
While Canadians expect to make financial transactions daily, they aren’t always able to plan for the unexpected fees that accompany them.
96%
of Canadians expect to see all fees transparently and upfront
81%
of Canadians were negatively impacted by a hidden fee after making an international money transfer
75%
of Canadians expressed how these hidden fees have eroded their trust with their financial service providers
Action must be taken against junk fees in international payments
Most Canadians (69%) consider a hidden fee in a financial transaction to be a junk fee.
They expect transparency. In fact, the majority of Canadians (79%) want policymakers to prioritize broader junk fees legislation to include more financial transactions.
It’s essential for regulators and policymakers to include financial transactions, including international payments / remittances, as part of broader junk fees legislation. Doing so will help to restore trust in financial institutions and alleviate the stress of junk fees on Canadians’ wallets.
Canada: Let’s Talk about Junk Fees
Junk fees impact all aspects of Canadians’ everyday lives — including international payments. Learn more about how and why Canadians want this financial burden addressed.