What you need to know
Canada’s Bank Act requires all banks to inform consumers in plain language that coercive tied selling is an illegal practice. Under section 459.1 of the Bank Act, banks are prohibited from imposing undue pressure on, or coercing a person to obtain a product or service from the bank or any of its affiliates as a condition for obtaining another product or service from the bank. President’s Choice Bank has created this page to help you understand:
- what is coercive tied selling,
- what is not coercive tied selling, and,
- how to contact us if you have any questions, complaints or concerns with respect to coercive tied selling.
What is Coercive Tied Selling?
Coercive tied selling occurs if a consumer is put in a position of undue pressure to purchase a product or service the consumer does not want from a bank or one of its affiliates, as a condition of receiving another product or service from the bank.
For example, a bank cannot tell you that you are approved for a credit card only if you transfer all of your investments to the bank as well.
This practice is against the law. If you qualify for a product or service offered by a bank in Canada, the bank’s representative is not allowed to unduly pressure you to buy another product or service you do not want, as a condition or being provided the product or service you do want.
What is not Coercive Tied Selling?
Offering customers special offers, or packages aimed at showing appreciation for their continued business may be confused with tied selling. Common practices that may be confused with tied selling, are Preferential Pricing, and Bundling of Products and Services.
This is where a business offers a better price or rate to a customer in appreciation for their continued business. For example, where a store may offer you a discount if you purchase more than one item, similarly a bank may offer you a lower interest rate on a loan if you use more of its products or services.
Bundling of Products and Services:
This is where a business combines various products or services into a package, offering customers better prices, incentives or more favorable terms than if they were purchased separately. For example, a fast food chain may offer a meal combination that includes a hamburger, fries and a drink for a lower overall price than if you bought the three items separately. Similarly, a bank may offer bundled financial products at rates or prices that are better than what would apply to the individual products.
Bundling of products in this way is permitted because you have the choice of buying items separately or in a package.
What is Our Commitment to You?
We expect all employees of President’s Choice Bank to comply with the law by not practicing coercive tied selling. We provide our employees with information and training on acceptable sales practices. We urge you to let us know if you believe that you have experienced coercive tied selling in any dealings with us.
If you have any questions, complaints or concerns, contact President’s Choice Bank as follows:
By telephone, toll free: 1 866 246 PCMC (7262)
Services for the hearing impaired: 1 855 223 3499 (TTY only)
By email: firstname.lastname@example.org
President's Choice Financial Mastercard
P.O. Box 4403, STN A, Dept. 5114
Toronto, ON M5W 5Y4