Senator Pierrette Ringuette

Bank fees to be scrutinized by Senate

Some CIBC customers who want to withdrawal money from their own bank account will soon see the fee go up a nickel to 65 cents on certain transactions.

With consumers angered at every turn during the current economic downturn, parliamentarians are set to grill Canada's banks and credit-card companies about what is driving higher fees and borrowing costs.

The Senate banking committee is set to launch hearings this month at the urging of New Brunswick Liberal Senator Pierrette Ringuette.

Behind the scenes, major players in the financial industry have enlisted an army of lobbyists and public-relations specialists to court the public and politicians after dodging a bullet earlier this year.

Concerned that the federal budget was going to include more regulation to rein in credit card interest rates, the companies were relieved when Finance Minister Jim Flaherty simply outlined proposals to strengthen disclosure requirements to assist consumers to make "informed decisions" when using credit.