However, Flaherty did not impose a cap on card interest rates, saying Canadians have adequate choice in a well functioning financial system.

That provoked NDP leader Jack Layton to jibe that Flaherty's changes merely mean that consumers will be told a little bit more about how they're going to be gouged.

Layton called for banks to provide no-frills low-interest-rate cards, saying the choice consumers are being given now is that they can  "be gouged, or they can be gouged more deeply."

Flaherty said that the new measures - headed by the 21-day interest-free period on new purchases when cardholders pay their monthly balance in full - will ensure Canada remains at the forefront of consumer protection in the financial services sector.

Under the new regulations, monthly statements will have to show how long it would take to pay off a balance making only minimum payments. This is intended to give consumers a truer picture of their debt load.

A new summary box would appear on bills clearly setting out key features such as interest rates and fees.

Credit card companies would also find some debt collection practices prohibited, including contacting customers outside specified hours on weekdays and weekends.

The government will begin hearing submissions from stakeholders on the proposed rules June 13.

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