New Canadian stunned when Scotiabank penalty soars without warning
A Vancouver man is speaking out about how Scotiabank charged him $25,000 to pay out his mortgage early — nine months after telling him the fee would be half that much.
Canadian Banker's Association president Terry Campbell said banks calculate mortgage prepayment fees based on the amount they lose when the contract is broken.
Campbell said he expects the federal government to announce that it will soon require banks disclose more information to consumers about prepayment fees up front.
By Kathy Tomlinson
CBC News Posted: Mar 22, 2011 6:14 AM PT
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