Finance Committee on Feb. 25th, 2008

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

Why is it not consumer-driven behaviour?

[Ursula Menke]

The largest part of the behaviour is not something over which consumers have control. Somebody puts a little camera into a machine. It's really beyond the consumer's ability to control. They don't see these things, and so in that sense--

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

Okay, I understand what you're getting at.

What happens with people who do have their identity taken or stolen? Has there been cooperation from the financial institutions?

[Ursula Menke]

Yes. There is a code on debit cards that deals directly with this matter, and if there has been identity theft or that fraudulent activity, basically the institutions hold them harmless.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

But you haven't seen situations in which the institution and the consumer have been at odds as to the rectification of the moneys that have been stolen or borrowed or misappropriated?

[Ursula Menke]

Certainly that happens. That does happen.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

I have just one more quick one.

It does happen? But is that...?

[Ursula Menke]

In those circumstances, at that point in time, it's really beyond.... On a specific case, it's a redress issue. It's really not part of the mandate of the agency, so we ask the consumers to go to the ombudsman services to deal with them and to use that chain.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

I have a final quick question on credit unions in Quebec. Do you have any jurisdiction over them?

[Ursula Menke]

No.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

Thank you, Mr. Chair.

[The Chair, Conservative, Rob Merrifield]

Mr. Crête, you have five minutes.

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Thank you, Mr. Chairman. In July 2007, you carried out a survey which indicated that 33% of respondents were not well aware of their rights as far as financial products on the market are concerned. It states that 41% stated they needed more information and that 60% of respondents mentioned that they found most information on financial issues hard to understand. Earlier on, you said that you would like to have a bigger budget in order to be able to act on these issues.

Could you explain how your funding works? I understood that it was the financial institutions, the clients, that provided your funding. Do you file budgetary requests every year with the people who pay the fees? Explain how it works to us, so that we can determine if the available amounts could be increased.

[Ursula Menke]

I will ask my colleague to respond in detail. I know that we collect these fees and that it is not the institutions that set a ceiling.

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

How is the funding defined?

[Jim Callon]

The funding is defined based on our projected needs and the activities we have outlined in our business plan. The fees that are applied to the institutions are set and invoiced during the fiscal year. Those are the funds we have available to carry out the activities, including compliance and consumer education.

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Who determines the amount of the fees?

[Jim Callon]

We establish the budget.

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Therefore, if you decide to fund a particular information campaign for the general public in order to improve awareness of your organization, you yourselves would be able to say that, for example, you need $2 million more in order to carry this out. You would set the rate, and the companies would pay the fees.

[Jim Callon]

Yes, but on top of that, the government decided last year to contribute to this effort in order to increase consumers' skills in the financial sector.

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

What size was the contribution? What was the amount you were given?

[Ursula Menke]

We were given $3 million over two years.

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

And how much money came from the companies?

[Ursula Menke]

Approximately $8 million per year.

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

So you receive $8 million a year plus $1.5 million.