Junk fees are taking a toll on Canadians’ financial and emotional wellbeing

Hidden cost of hidden fees

One of the most egregious examples of junk fees is the inflated exchange rate markups buried within international money transfers. Wise’s survey revealed that 81% of Canadians have been negatively impacted by these hidden fees, which often catch consumers off guard and disrupt their financial plans.

Despite this, federal junk fee legislation has failed to address hidden fees in financial services. This omission is glaring, considering that over half (51%) of Canadians have sent money internationally in the past year — and 79% of survey respondents believe these fees should be a legislative priority.

These hidden charges are more than just an inconvenience; they’re an obstacle to financial stability. Over half of Canadians (54%) said junk fees have made it harder to budget, while 48% reported that these charges are preventing them from traveling and 51% said they’re struggling to save for major life purchases like a home.

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Eroding consumer trust

The pervasive nature of junk fees isn’t just affecting Canadians’ wallets; it’s also eroding trust in the institutions that impose them. According to the survey, 75% of respondents reported reduced trust in their financial institutions due to these fees. Moreover, 86% said junk fees have influenced their decisions about which companies they choose to do business with, and 74% have either stopped or plan to stop using services that rely on hidden charges.

For Canadians, the message is clear: Transparency shouldn’t be optional. An overwhelming 96% of respondents expect all fees to be disclosed upfront before using a financial service. Anything less is seen as a breach of trust.

A call to action

“The results of this study highlight an urgent need for action,” Carroll emphasized. “Hidden fees in international payments, and financial services as a whole, must be part of the conversation around junk fees. Ignoring this issue risks further damaging consumer trust and increasing financial hardship for Canadians.”

The survey underscores the growing call for transparency and fairness in financial transactions. With over 2,500 Canadians between the ages of 18 and 60 participating, the findings make it clear that junk fees are not just an annoyance — they’re a serious issue with tangible impacts on Canadians’ financial and emotional well-being.

For Canadians, the stakes are high. Without action to address junk fees comprehensively, the financial and emotional toll is likely to grow, leaving more individuals struggling to stay afloat in an already challenging economic climate.

Survey methodology

The survey was conducted by Dynata on behalf of Wise from October 4 to 8, with a total of 2,562 Canadian respondents between the ages of 18 to 60 years.