OTTAWA, April 2 (UPI) -- The Canadian Bankers Association defended credit card fees to a senate committee in Ottawa, saying consumers have a choice of 68 low-rate cards.
The senate's Standing Committee on Banking, Trade and Commerce is having hearings on fees amid complaints of interest rates as high as 24.75 percent, the Toronto Star reported.
CBA President Nancy Hughes Anthony said consumers unhappy with fees were free to shop around.
"Consumers and business, I believe, benefit from the tremendous competition and choice of these payment cards," Hughes Anthony said. "I think we should remember that (credit cards) are not the only type of payment available to consumers ... and they compete clearly with cash, with checks, with debit cards as well as unregulated electronic payment services like PayPal."
Of all credit cards in Canada, banks issue 92 percent, the committee heard.
Hughes Anthony justified interest rates as a result of banks' processing costs, technology upgrades, rewards programs and outlays related to fraud. She said with the economy in decline, more bankruptcies and defaults are expected.
