Description: A number of measures have already been put in place to help Canadian consumers deal with the economic impacts from the COVID-19 virus. But, so far, those high credit card interest rates don’t appear to have been touched. With Canadians facing outright unemployment or reductions in hours worked, a break on credit card rates would be welcome. Quebec financial institution Desjardins has announced a rate cut on its credit card accounts because of the crisis, and the Prime Minister stated the government has been in discussions with financial institutions on this matter.

Date:  April 3, 2020

Source:  cbc.ca

Link: https://www.cbc.ca/news/business/credit-card-rates-coronavirus-1.5517766

Discussion points:

1) As a student, do you have a credit card? Do you carry a balance? What about your classmates?

2) Do you think the federal government has a role to play in forcing down these credit card rates ?

3) In Wiley’s Financial Accounting: Tools for Business Decision-Making, chapter eight opens with a vignette dealing with credit management at Canadian Tire. How does Canadian Tire’s credit card program rank in terms of its overall accounts receivable?