TORONTO–To offer relief during the coronavirus pandemic, 214 credit unions in Canada have reduced the interest rate on the credit cards offered to business and prime members to 10.9%.
The reduced rate, which takes effect April 13, is being offered for up to six months with eligibility being decided on a case-by-case basis, according to the Canadian Credit Union Association. The new rate reflects a nearly 50% reduction.
“As Canadians are struggling to manage their finances during these difficult times, credit unions and their partners are working to offer solutions that deliver relief from the hardship caused by the virus. Through this new financial relief initiative, credit union cardholders will now have access to lower interest rates in addition to other important relief measures,” said Martha Durdin, president and CEO of the CCUA. “Credit unions have a long history in Canada of helping their members and as this crisis has unfolded, they continue to encourage members to get in touch if the crisis is making meeting financial obligations challenging.”
The CCUA said the credit unions had joined with Collabria Financial, an independent entity that provides Canada’s credit unions with credit card services, had already taken steps earlier in March to help credit union cardholders by offering minimum payment deferrals for up to six months.
Other Steps
In addition, the credit unions have also they introduced an “emergency temporary credit limit increase’ created to extend the limit for cardholders outside of Canada who were actively working to return to Canada. Through this offering, a Canadian family stranded abroad was able to get an immediate increase on their credit card, which enabled them to return to Canada, the CCUA reported.
Members are being encouraged to contact the Cardholder Service Call Center to discuss their eligibility for the special card offer.