Mr. Speaker, financial institutions have made efforts to deal with privacy concerns. For example, they participated with consumer groups, government representatives and other business groups in the development of the Canadian Standards Association model code for the protection of personal information which was finalized in April 1996.
The government wants to build on these efforts. Accordingly, the bill provides the authority to make regulations in the area of privacy. Specifically, it allows for regulations requiring financial institutions to establish procedures governing the collection, retention, use and disclosure of customer information and to inform customers about these procedures. In addition, the bill provides the authority to require financial institutions to establish procedures for dealing with complaints on privacy and to report annually on complaints received and actions taken to respond to them.
Following passage of the bill, the government intends to establish regulations to implement all of these requirements. I am sure that hon. members will agree with the merits of this proposal. Although privacy protection is an issue that cuts across industries, and the government is developing a broader approach to privacy protection, it is important to take this opportunity to respond to the immediate concerns of consumers of financial services.
Bill C-82 also provides for enhancements to the cost of credit disclosure provisions in the legislation. These provisions were designed to ensure consumers are informed about the cost of credit before they enter into loan contracts.
As part of the internal trade initiative, federal and provincial governments agreed in September 1996 to harmonize cost of credit disclosure requirements across jurisdictions. The objective of the harmonization exercise is to ensure uniform disclosure practices across the country and to ensure consumers benefit from a consistently high standard of protection.
Accordingly, the bill proposes amendments to the disclosure provisions in federal legislation. These amendments will allow the government to implement all aspects of the agreement with the provinces.
Under the new cost of credit disclosure regime, consumers will receive fair, accurate, timely and comparable information about the cost of borrowing. Armed with such information, they will be better able to assess credit options and obtain the most economical credit for their needs.
The government has been working to better protect consumers in other ways. I would like to report on significant initiatives in two areas: access to basic financial services and information about fees.
During the course of the 1997 review, several consumer groups expressed concern that low income individuals often have difficulty in getting access to basic financial services such as opening accounts and cashing cheques. For example, it was pointed out that financial institutions' identification requirements often include credit cards and a driver's licence which not everyone has. To remedy the situation the government held discussions with consumer groups and with financial institutions.
I am pleased to report that the major banks have made a number of important commitments to improve access. In particular, banks have agreed that they will require only two pieces of signed identification instead of three to open accounts or to cash cheques. They will also accept sponsorships from responsible customers known to the branch. In addition, employment will not be a condition of opening a bank account. Bank staff will be trained to follow these policies and to be sensitive to the needs of low income individuals.
The government has also encouraged improvements with respect to information about service fees. While consumers have access to a broad range of accounts in deposit taking institutions, they often find it difficult to compare the changes applicable to various accounts and therefore choose the best account for their needs. After discussion, the major banks have agreed to ensure that clear information about their products and services is available in publicly accessible areas of their branches. This will include information about low cost accounts and tips on minimizing fees. The banking industry is also working with Industry Canada to
provide information about bank accounts on Industry Canada's Internet site.
I believe that the measures I have discussed today will provide important benefits to consumers of financial services. We are confident that these initiatives will help ensure a healthy balance in the relationship between financial institutions and their clients.
In closing, on behalf of the government I would like to extend sincere appreciation to the various consumer groups that played a role in shaping these initiatives. These groups gave freely of their time and energy to ensure that the consumer voice was heard in this review, and the government has listened.
I call on my colleagues in the House to do the same by giving their support to Bill C-82.