Multiple Borrower Credit Accounts
Do you share a borrowing account, such as a credit card, mortgage or other loan with another person? If so, in the coming months, you may receive a notice from your bank about changes to the way cost of borrowing information about your account is provided. Banks are committed to keeping customers fully informed about their accounts and want to ensure that all borrowers are able to receive the information they want and need.
What is changing?
Banks will be ensuring that all borrowers who are borrowing parties on a credit agreement are able to receive all required cost of borrowing disclosures, so that they are fully informed about important information and activities related to their accounts. Cost of borrowing disclosures might be, for example, a document you receive that outlines the interest and other costs when you take out a loan, or a monthly statement for your credit card or line of credit.
Banks have been working with their regulator, the Financial Consumer Agency of Canada, to balance regulatory requirements and customer preferences. Visit the FCAC website for detailed information about the position taken by the Commissioner of the Financial Consumer Agency of Canada on this issue.
Can we choose not to receive duplicate information?
Many co-borrowers may be spouses or other family members living at the same address who do not want to receive duplicate information, such as credit card or line of credit statements. The requirements allow some flexibility in how customers receive disclosures, as long as the information is provided to all borrowers. Banks can provide borrowers with the statement or other cost of borrowing disclosure either individually or via one borrower’s address, subject to each bank’s available options. You may be able to choose or change which way you receive your disclosure statements. Your bank will provide you with more information about any disclosure options for your particular credit account.
Why do I now see other borrowers’ names on my statement?
Previously where banks may have sent statements addressed to only one of the borrowers on an account, going forward they are required to send the information to all borrowers. This may be done by adding all borrowers’ names to one statement or by sending separate statements to each borrower, depending on the bank’s systems options and the information it has about borrowers.
If some borrowers on your account are deceased or if their addresses have changed, you may need to contact your bank to provide that information. You should always ensure that your bank has current information about you and other borrowers on your account to enable it to contact you when necessary about your account. If your address or other information has changed recently, this is a good time to update your information.
As appropriate, please share information about these changes with other borrowers on your credit account(s). Please contact your bank directly if you have specific questions about your account(s).
