Consumer watchdog says banks charge unclear fees and uphold costs that hinder switching lenders
Canada's financial consumer watchdog has released a report criticizing the country's six largest banks for unclear fees and practices that hinder customers from switching lenders. The report aims to increase transparency and competition in the banking sector.
Why it matters
Consumer protection in banking is a major policy issue, as high fees and switching barriers can negatively impact lower-income households.
Bank towers in Toronto's financial district. Tijana Martin/The Canadian Press
Canada’s financial consumer watchdog said unclear fees imposed by the country’s six largest banks are costing consumers more money, while some processes discourage customers from switching to a different financial institution for better rates and pricing.
The Financial Consumer Agency of Canada’s 130-page report released Friday takes aim at barriers to switching banks, excess transaction fees, foreign currency conversion markups, ATM costs and other concerns. The report is part of Prime Minister Mark Carney’s efforts to boost innovation and improve access to financial services.
The FCAC said its findings raise questions about whether the cumulative costs disproportionately affect certain consumers, particularly those with lower incomes and limited savings. Across nine customer fee categories, the watchdog estimated that financial institutions made $2.45-billion in total revenue in 2025.
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