Even the government has noticed there’s a problem with all the bank fees and has now mandated that all big banks offer a no-fee option, but only for consumers they see as “vulnerable” such as students, senior citizens and low-income Canadians. Although this is a good start, there’s still a long way to go. What’s more, the no fee option only includes up to 12 free debit transactions, which easily adds up quickly if you are active in using your card.
Considering the average Canadian has record debt levels of $27,000, Mogo believes it’s time everyone had a free option without any limits on the number of transactions. This is the thinking behind Mogo’s Prepaid Visa Card; it’s free and you get unlimited monthly transactions. Considering the banks just came off a record 2013 and are continuing to report record profits, I’m not sure we’re going to see them move to unlimited free transactions anytime soon.