moved for leave to introduce Bill C-345, an act to provide for the limitation of interest rates on credit cards.
Mr. Speaker, I am extremely pleased to introduce my private member's bill today. This legislation is an act to provide for the limitation of interest rates on credit cards. The purpose of this bill is to significantly reduce the excessive credit card interest rates that banks and department stores are currently charging.
I am sure that members in the House will agree that the major banks are making unprecedented profits. Indeed last year the major banks collectively raked in some $15 billion in profits. This year the third quarter reported profits are 20 per cent over last year for at least two of the major banks.
Industry Canada officials have recently stated that credit card rates are persistently high. The major banks countered that their low rate cards are now in the 11 per cent range.
My bill would ensure that any credit card issued by a financial institution or a department store could not have an interest rate exceeding more than four or five percentage points over the Bank of Canada's discount rate.
Our economy needs a boost. My bill will greatly assist in jump starting the economy. If more Canadians have access to credit cards at a lower interest rate then obviously their purchasing power will increase.
It is time for all parliamentarians to put an end to the fat cats at the lending institutions reaping fat profits out of the pockets of Canadians. I look forward to unanimous approval of this legislation from all members in this House.
(Motions deemed adopted, bill read the first time and printed.)