RBC backs off on fee change for payments


TORONTO – The Royal Bank is backing off on its plan to charge customers a fee to make credit card, loan and mortgage payments under certain circumstances.

The big bank (TSX:RY) says it has listened to client feedback and reversed its original decision to include those transactions in a customer’s monthly limit of free debit transactions.

The change means mortgage and loan payments, investment contributions and credit card payments will not count towards a customer’s monthly limit.

Customers who have accounts with unlimited debit transactions would not have been affected.

Royal Bank was widely criticized for the new charge that was part of a broader change to the fees it charges customers.

The NDP has called on Ottawa to ban so-called “pay-to-pay” fees by Canada’s big banks.