Credit Cards

Just noticed Capital One isn't covered by CDIC

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  • Feb 18th, 2018 12:17 am
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[OP]
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Jul 13, 2014
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Just noticed Capital One isn't covered by CDIC

How much of an issue is this and should I cancel my card?

What does this even mean in terms of credit cards? What kind of deposit would a credit card have besides payment?
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[OP]
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Kiraly wrote: What are you afraid of losing? CDIC insures your deposits. A credit card isn't that.
That's why I'm confused. Pretty much every other CC is covered. Even Amex is covered.
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Mar 24, 2008
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It's nothing to do with credit cards. By definition, CDIC members offer deposit accounts. Until about a year ago, Amex Bank of Canada offered deposit accounts. Capital One doesn't in Canada and never has, so no CDIC.
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It probably refers to deposits given for their secured credit cards
[OP]
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coolintheshade wrote: It probably refers to deposits given for their secured credit cards
That makes the most sense
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MayorOfToronto wrote: That's why I'm confused. Pretty much every other CC is covered. Even Amex is covered.
What do you mean "every other CC is covered"? Covered for what? CDIC insures deposits. Credit cards aren't deposits. Unless you are talking about a secured credit card, they aren't holding any of your money. There's nothing to insure.
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This also might explain why Capital One is quick to issue cheques for credit balance on your account. If I ever forget credit balance, they never let it get to third statement after the fact.

Although, I see it's not something that is explicitly covered by CDIC anyway. But, I do not see an exclusion either.
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[OP]
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kavatski wrote: Nope. Again, Amex used to offer actual savings accounts.

https://www.americanexpress.com/ca/en/c ... ister.html
Kiraly wrote: What do you mean "every other CC is covered"? Covered for what? CDIC insures deposits. Credit cards aren't deposits. Unless you are talking about a secured credit card, they aren't holding any of your money. There's nothing to insure.


If you have a Capital One card sign in to your account and look at the very bottom of the page

NOTICE
Deposits with
Capital One Bank (Canada Branch)
are not insured by the
Canada Deposit Insurance Corporation

Clearly they have a reason to mention that. I'm assuming it has to do with deposits for secured accounts. That makes the most sense.
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Call them if the previous answers doesn't satisfy you.
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If you just use their credit card, why do you care how they are covered under CDIC? Either you owe them money or owe nothing, they never owe you, so what could you "lose" by them not being covered by CDIC?

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