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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. 

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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." 

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