Cooperative Credit Associations Act (S.C. 1991, c. 48)

Marginal note:Notice of unpaid amount

• 385.04 (1) A retail association shall mail to each person, insofar as is known to the association, to whom a deposit referred to in paragraph 385.03(1)(a) is payable, or to whom or at whose request an instrument referred to in paragraph 385.03(1)(b) was issued, certified or accepted, at the person’s recorded address, a notice stating that the deposit or instrument remains unpaid.

• Marginal note:When notice to be sent

  (2) The notice must be sent during the month of January next following the end of the first two-year period, during the month of January next following the end of the first five-year period and also during the month of January next following the end of the first nine-year period

  • (a) in the case of a deposit made for a fixed period, after the fixed period has terminated;

  • (b) in the case of any other deposit in respect of which no transaction has taken place and no statement of account has been requested or acknowledged by the creditor; and

  • (c) in the case of a cheque, draft or bill of exchange, in respect of which the instrument has remained unpaid.

• Marginal note:Notification of transfer to the Bank of Canada

  (3) The notice to be sent during the month of January next following the end of the first nine-year period determined under paragraphs (2)(a) to (c), as the case may be, must also

  • (a) [Repealed before coming into force, 2008, c. 20, s. 3]

  • (b) include the mailing address and websites where information can be obtained on how to claim the unpaid deposit or instrument.

Accounts

Marginal note:Definitions

385.05 The following definitions apply in this section and sections 385.1 to 385.13, 385.27 and 385.28.

member association

member association means a retail association that is a member institution as defined in section 2 of the Canada Deposit Insurance Corporation Act. (association membre)

personal deposit account

personal deposit account means a deposit account in the name of one or more natural persons that is kept by that person or those persons for a purpose other than that of carrying on business. (compte de dépôt personnel)

retail deposit account

retail deposit account means a personal deposit account that is opened with a deposit of less than $150,000 or any greater amount that may be prescribed. (compte de dépôt de détail)

Marginal note:Account charges

385.06 A retail association shall not, directly or indirectly, charge or receive any sum for the keeping of an account unless the charge is made by express agreement between the association and a customer or by order of a court.

Marginal note:Disclosure on opening account

• 385.07 (1) A retail association shall not open or maintain an interest-bearing deposit account in Canada in the name of any natural person unless the association discloses, in accordance with the regulations, to the person who requests the association to open the account, the rate of interest applicable to the account and how the amount of interest to be paid is to be calculated.

• Marginal note:Exception

  (2) Subsection (1) does not apply in respect of an interest-bearing deposit account that is opened with a deposit in excess of $150,000 or any greater amount that may be prescribed.

Marginal note:Disclosure in advertisements

385.08 No person shall authorize the publication, issue or appearance of any advertisement in Canada that indicates the rate of interest offered by a retail association on an interest-bearing deposit or a debt obligation unless the advertisement discloses, in accordance with the regulations, how the amount of interest is to be calculated.

Marginal note:Disclosure regulations

385.09 The Governor in Council may make regulations respecting

• (a) the time and place at which and the form and manner in which disclosure is to be made by a retail association of

  • (i) interest rates applicable to debts of the association and deposits with the association, and

  • (ii) the manner in which the amount of interest paid is to be calculated;

• (b) the time and place at which and the form and manner in which any charges for the keeping of an account are to be disclosed by a retail association to its customers; and

• (c) any other matters or things that may be necessary to carry out the requirements of sections 385.06 to 385.08.

Marginal note:Disclosure required on opening a deposit account

• 385.1 (1) Subject to subsections (2) to (4), a retail association shall not open a deposit account in the name of a customer unless, at or before the time the account is opened, the retail association provides in writing to the individual who requests the opening of the account

  • (a) a copy of the account agreement with the association;

  • (b) information about all charges applicable to the account;

  • (c) information about how the customer will be notified of any increase in those charges and of any new charges applicable to the account;

  • (d) information about the association’s procedures relating to complaints about the application of any charge applicable to the account; and

  • (e) any other information that may be prescribed.

• Marginal note:Exception

  (2) If a deposit account is not a personal deposit account and the amount of a charge applicable to the account cannot be established at or before the time the account is opened, the retail association shall, as soon as is practicable after the amount is established, provide the customer in whose name the account is kept with a notice in writing of the amount of the charge.

• Marginal note:Exception

  (3) If a retail association has a deposit account in the name of a customer and the customer by telephone requests the opening of another deposit account in the name of the customer and the retail association has not complied with subsection (1) in respect of the opening of that other account, the retail association shall not open the account unless it provides the customer orally with any information prescribed at or before the time the account is opened.

• Marginal note:Disclosure in writing

  (4) If a retail association opens an account under subsection (3), it shall, not later than seven business days after the account is opened, provide to the customer in writing the agreement and information referred to in subsection (1).

• Marginal note:Right to close account

  (5) A customer may, within 14 business days after a deposit account is opened under subsection (3), close the account without charge and in such case is entitled to a refund of any charges related to the operation of the account, other than interest charges, incurred while the account was open.

• Marginal note:Regulations

  (6) For the purposes of subsection (4), the Governor in Council may make regulations prescribing circumstances in which, and the time when, the agreement and information will be deemed to have been provided to the customer.

Marginal note:Disclosure of charges

385.11 A retail association shall disclose to its customers and to the public, at the prescribed time and place and in the prescribed form and manner, the charges applicable to deposit accounts with the association and the usual amount, if any, charged by the association for services normally provided by the association to its customers and to the public.

Marginal note:No increase or new charges without disclosure

• 385.12 (1) A retail association shall not increase any charge applicable to a personal deposit account with the association or introduce any new charge applicable to a personal deposit account with the association unless the association discloses the charge at the prescribed time and place and in the prescribed form and manner to the customer in whose name the account is kept.

• Marginal note:Mandatory disclosure

  (2) With respect to prescribed services in relation to deposit accounts, other than personal deposit accounts, a retail association shall not increase any charge for any such service in relation to a deposit account with the association or introduce any new charge for any such service in relation to a deposit account with the association unless the association discloses the charge at the prescribed time and place and in the prescribed form and manner to the customer in whose name the account is kept.

Marginal note:Application

385.13 Sections 385.1 to 385.12 apply only in respect of charges applicable to deposit accounts with the retail association in Canada and services provided by it in Canada.

Registered Products

Marginal note:Disclosure required concerning registered products

• 385.131 (1) Subject to subsection (2), a retail association shall not open an account that is or forms part of a registered product in the name of a customer, or enter into an agreement with a customer for a prescribed product or service that is or forms part of a registered product, unless the retail association provides, in the prescribed manner, to the individual requesting the account or the prescribed product or service

  • (a) information about all charges applicable to the registered product;

  • (b) information about how the customer will be notified of any increase in those charges and of any new charges applicable to the registered product;

  • (c) information about the retail association’s procedures relating to complaints about the application of any charge applicable to the registered product; and

  • (d) any other information that may be prescribed.

• Marginal note:Regulations

  (2) The Governor in Council may make regulations specifying the circumstances under which a retail association need not provide the information.

• Definition of registered product

  (3) In this section, registered product means a product that is defined to be a registered product by the regulations.

Borrowing Costs

Definition of cost of borrowing

385.14 For the purposes of this section and sections 385.15 to 385.24, cost of borrowing means, in respect of a loan made by a retail association,

• (a) the interest or discount applicable to the loan;

• (b) any amount charged in connection with the loan that is payable by the borrower to the association; and

• (c) any charge prescribed to be included in the cost of borrowing.

For those purposes, however, “cost of borrowing” does not include any charge prescribed to be excluded from the cost of borrowing.

Marginal note:Rebate of borrowing costs

• 385.15 (1) If a retail association makes a loan in respect of which the disclosure requirements of section 385.16 apply and the loan is not secured by a mortgage on real property and is required to be repaid either on a fixed future date or by instalments, the association shall, if there is a prepayment of the loan, rebate to the borrower a portion of the charges included in the cost of borrowing in respect of the loan.

• Marginal note:Exception

  (2) The charges to be rebated do not include the interest or discount applicable to the loan.

• Marginal note:Regulations

  (3) The Governor in Council may make regulations governing the rebate of charges under subsection (1). The rebate shall be made in accordance with those regulations.

Marginal note:Disclosing borrowing costs

• 385.16 (1) A retail association shall not make a loan to a natural person that is repayable in Canada unless the cost of borrowing, as calculated and expressed in accordance with section 385.17, and other prescribed information have been disclosed by the association to the borrower at the prescribed time and place and in the prescribed form and manner.

• Marginal note:Non-application

  (2) Subsection (1) does not apply in respect of a loan that is of a prescribed class of loans.

Marginal note:Calculating borrowing costs

385.17 The cost of borrowing shall be calculated, in the prescribed manner, on the basis that all obligations of the borrower are duly fulfilled and shall be expressed as a rate per annum and, in prescribed circumstances, as an amount in dollars and cents.

Marginal note:Additional disclosure

• 385.18 (1) If a retail association makes a loan in respect of which the disclosure requirements of section 385.16 are applicable and the loan is required to be repaid either on a fixed future date or by instalments, the association shall disclose to the borrower, in accordance with the regulations,

  • (a) whether the borrower has the right to repay the amount borrowed before the maturity of the loan and, if applicable,

    • (i) any terms and conditions relating to that right, including the particulars of the circumstances in which the borrower may exercise that right, and

    • (ii) whether, in the event that the borrower exercises the right, any portion of the cost of borrowing is to be rebated, the manner in which any such rebate is to be calculated or, if a charge or penalty will be imposed on the borrower, the manner in which the charge or penalty is to be calculated;

  • (b) in the event that an amount borrowed is not repaid at maturity or, if applicable, an instalment is not paid on the day the instalment is due to be paid, particulars of the charges or penalties to be paid by the borrower because of the failure to repay or pay in accordance with the contract governing the loan;

  • (c) at the prescribed time and place and in the prescribed form and manner, any prescribed changes respecting the cost of borrowing or the loan agreement;

  • (d) particulars of any other rights and obligations of the borrower; and

  • (e) any other prescribed information, at the prescribed time and place and in the prescribed form and manner.

• Marginal note:Disclosure in credit card applications

  (2) A retail association shall, in accordance with the regulations, at the prescribed time and place and in the prescribed form and manner, provide prescribed information in any application forms or related documents that it prepares for the issuance of credit, payment or charge cards and provide prescribed information to any person applying to it for a credit, payment or charge card.

• Marginal note:Disclosure re credit cards

  (3) If a retail association issues or has issued a credit, payment or charge card to a natural person, the association shall, in addition to disclosing the costs of borrowing in respect of any loan obtained through the use of the card, disclose to the person, in accordance with the regulations,

  • (a) any charges or penalties described in paragraph (1)(b);

  • (b) particulars of the person’s rights and obligations;

  • (c) any charges for which the person becomes responsible by accepting or using the card;

  • (d) at the prescribed time and place and in the prescribed form and manner, any prescribed changes respecting the cost of borrowing or the loan agreement; and

  • (e) any other prescribed information, at the prescribed time and place and in the prescribed form and manner.

• Marginal note:Additional disclosure re other loans

  (4) If a retail association enters into or has entered into an arrangement, including a line of credit, for the making of a loan in respect of which the disclosure requirements of section 385.16 apply and the loan is not a loan in respect of which subsection (1) or (3) applies, the association shall, in addition to disclosing the costs of borrowing, disclose to the person to whom the loan is made, in accordance with the regulations,

  • (a) any charges or penalties described in paragraph (1)(b);

  • (b) particulars of the person’s rights and obligations;

  • (c) any charges for which the person is responsible under the arrangement;

  • (d) at the prescribed time and place and in the prescribed form and manner, any prescribed changes respecting the cost of borrowing or the loan agreement; and

  • (e) any other prescribed information, at the prescribed time and place and in the prescribed form and manner.