Quebec consumers association wants a ban on credit advertising and solicitation

A Visa card is displayed on Wednesday, May 15, 2024. (Jenny Kane / The Canadian Press) (Jenny Kane/AP)

The Coalition of Quebec Consumers Association (CACQ) is calling for a ban on credit advertising and solicitation to mark World Consumer Rights Day on Saturday.

The CACQ acknowledges that progress has been made in Quebec in terms of consumer protection, notably the adoption in October 2023 of the Act to protect consumers from planned obsolescence (Bill 29).

However, the organization believes that stricter measures need to be introduced to better protect consumers.

“The CACQ already launched a campaign against credit solicitation, because we felt that the advertising we were receiving was all smoke and mirrors,” said CACQ director general Laurence Marget in an interview on Saturday.

The organization is calling for credit advertising to be banned on television, as well as on the web and by post.

Marget points out that the Coalition has noticed that a number of advertisements are linked to travel and that they encourage consumers to use credit.

“We’re not against credit, but more about soliciting it with messages that strongly encourage consumers to take out credit, perhaps for something they don’t need immediately,” she explains.

The director general points out that consumer associations often deal with debt-related issues.

“When we look at the sources of debt, it’s very often credit cards. People come in with one, two, sometimes five credit cards,” she said.

The CACQ is also taking advantage of World Consumer Rights Day to call for a ban on “balloon” car loans, rather than just their regulation. The practice of “balloon” loans was regulated by Bill 72, adopted in November 2024.

The “balloon” loan is characterized by low payments over a period of time, until a large final payment (the “balloon”) has to be made.

“And the balloon is usually the principal, because initially you’ve only paid back the interest,” said Marget, pointing out that consumers are living in debt as a result.

In a news release, the coalition also criticized the fact that financial institutions’ assessments of credit applicants’ ability to repay are inadequate.

In practice, financial institutions often content themselves with a simple credit report check, without analyzing the consumer’s real ability to repay.

“For example, an applicant needing $800 may be granted a pre-authorization for $10,000 without a thorough assessment of his or her financial situation,” the CACQ said.

The CACQ brings together 17 consumer associations across the province.

This report by The Canadian Press was first published in French on March 15, 2025.