Madam Speaker, before I begin, I want to thank my hon. colleague for raising this important question around bank fees. More broadly, I will extend my sincere appreciation for his continued feedback from the very beginning of this pandemic, which in fact has helped shape my own thinking on a number of our emergency supports.
The past 15 months have not been easy for anyone. The COVID-19 pandemic and recession have affected every Canadian in some way, in particular low-income Canadians and small businesses. We are seeing some light at the end of the tunnel now, but we have to remain vigilant and not take half measures until we know this is behind us. That is why our government is continuing to offer support programs for individuals and businesses.
Turning to the issue of bank fees, we understand how essential it is for Canadians to rely on strong consumer protection standards in their dealings with their banks. The government takes the protection of financial consumers very seriously so that we can ensure all Canadians benefit from strong consumer protection.
As we well know, the pandemic has caused financial challenges and uncertainty for Canadians in every region of the country. We understand why so many people are concerned about higher bank fees. The Financial Consumer Agency of Canada is currently conducting research to obtain a fuller picture of the impact of COVID-19 on financial consumers. In a recent survey, it found that 30% of Canadians were paying additional bank fees as a result of this pandemic.
The most common fees were overdraft fees, ATM fees, withdrawal fees, late payment fees and insufficient funds fees. Three of these examples either directly or indirectly relate to shortages of cash, which disproportionately impact lower-income people.
We have to be a little careful here. I am sure the hon. member will appreciate that financial institutions make decisions with respect to things such as the fees they charge their clients independent of the government. That does not mean there is no role for the government to play.
Over the past few years, we have introduced a number of measures aimed at improving the confidence of Canadians in their banks and in our financial consumer protection system. In budget 2018, the government introduced certain measures to strengthen consumers' rights and interests when dealing with the banks and to improve the ability of the FCAC to protect consumers.
In 2018, the government also helped to secure voluntary commitments from Visa, Mastercard and American Express that would lead to lower costs for businesses, resulting in annual savings for small and medium-sized enterprises estimated at about a quarter of a billion dollars a year.
In the most recent budget, the government committed to launching consultations on further lowering credit card transaction fees. This would help small businesses affected by interchange fees and would ensure consumers' existing reward points are protected.
We are also moving forward with a consultation to specifically lower the rate of interest in the Criminal Code of Canada applicable to, as the member suggested, payday loans offered by payday lenders. This, again, disproportionately impacts low-income folks.
As well, I will mention briefly that as a result of a recent meeting I learned of an incredible Canadian company. Borrowell will extend new choices to Canadians by providing new technology, giving them lots of choice and creating jobs here at home.
I look forward to the follow-up from my friend and colleague on the other side.