moved for leave to introduce Bill C-606, An Act to amend the Interest Act (prepayment charge).
Mr. Speaker, it is my pleasure to introduce in the House of Commons today a bill governing penalties charged by banks when a consumer prepays the full amount of a mortgage. I would like to say that this bill is being seconded by the member for Sudbury.
The purpose of this bill is to limit mortgage prepayment penalties to three months' worth of interest and to prohibit banks from charging penalties if the prepayment is made as a result of the sale of a dwelling following a workplace relocation, serious illness or death, separation or job loss. Currently, consumers are at the mercy of banks, which do their utmost to maximize prepayment charges. These charges can exceed $30,000. Members may recall that, this winter, the NDP launched a major campaign to make life more affordable for Canadians. We made numerous suggestions aimed at protecting consumers from being exploited by banks, credit card issuers and telecommunications corporations. This bill is part of that agenda.
(Motions deemed adopted, bill read the first time and printed)