Sign up for our newsletter and get a curated list of the top trending stories and exclusive rewards every day.

Trending Topics

Get the MTL Blog app

Download on the App StoreGet it on Google Play

Your Minimum Credit Card Payment Is Going Up In Quebec Next Month

It's going up every year through 2025.
Staff Writer
Your Minimum Credit Card Payment Is Going Up In Quebec Next Month

The Office de la protection du consommateur (OPC) has put out a reminder that the minimum payment for credit cards in Quebec is set to increase starting on August 1, 2020.

Minimum payments in Quebec will go up by half a percentage point to 2.5%. The legal minimum will go up by the same rate each year until it reaches a total of 5% in 2025. This new rule was put into law in 2017. 

Editor's Choice:4 Bars In The Greater Montreal Area Have Been Linked To New Outbreaks Of COVID-19

From August 1, the amount required as a minimum payment on the balance of a credit card will be 2.5% of the balance of the card.

Office de la protection du consommateur (OPC) 

Since August 1, 2019, the OPC says, "all new credit card contracts include from the outset a periodic minimum payment that cannot be less than 5% of the balance."

The Office claims that this is to help "prevent over-indebtedness" among the public. 

"Making only the minimum payment on a credit card can be costly for consumers," said the OPC.

"For example, for a balance of $1,000 on a card with a credit rate of 19.9%, a consumer who makes a minimum payment set at 2.5% would repay the debt in 14 years and 7 months, while paying $1,433.99 in credit fees. With a minimum payment of 5%, they would repay their debt in 6 years and would have to pay $441.87 in credit fees." 

More from MTL Blog

Comments 💬

Our comment section is a place to promote self-expression, freedom of speech and positivity. We encourage discussion and debate, but our pages must remain a safe space where everyone feels comfortable and the environment is respectful.

In order to make this possible, we monitor comments to keep spam, hate speech, violence, and vulgarity off our pages. Comments are moderated according to our Community Guidelines.

Please note that Narcity Media does not endorse the opinions expressed in the comment section of an article. Narcity Media has the right to remove comments, ban or suspend any user without notice, or close a story’s comment section at any time.

First and last names will appear with each comment and the use of pseudonyms is prohibited. By commenting, you acknowledge that Narcity Media has the right to use & distribute your content across our properties.

Loading...