Disclosure on Account Opening by Telephone Request (Retail Associations) Regulations (SOR/2003-299)

Interpretation

Meaning of Act

1 In these Regulations, Act means the Cooperative Credit Associations Act.

Oral Disclosure

Marginal note:Information to be provided orally

• 2 (1) For the purpose of subsection 385.1(3) of the Act, the following information is prescribed as the information to be provided to the customer orally:

  • (a) the fact that the customer is receiving by telephone only part of the information relating to the deposit account charges and terms and that full disclosure in writing will be provided within seven business days after the account is opened;

  • (b) the fact that the customer may, within 14 business days after the deposit account has been opened, close the account without charge and, in such a 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;

  • (c) for a fixed-rate interest-bearing deposit account, the interest rate applicable to the account and how the amount of interest to be paid is to be calculated;

  • (d) for a variable-rate interest-bearing deposit account, the current interest rate, the manner by which the rate and amount of interest to be paid is to be calculated, and how, in the future, the customer may obtain information on the interest rate applicable to the account;

  • (e) for a deposit account in a currency other than Canadian currency, the fact that any deposit to the account will not be insured by the Canada Deposit Insurance Corporation;

  • (f) for a deposit account that does not have a fixed monthly charge for a service package, the applicable charges for monthly statements of account, passbook updates, cash withdrawals, cheque withdrawals, debit payment purchases, preauthorized debits, bill payments, transfers between accounts and, if cheques are offered to the customer at the time the account is opened, cheque orders; and

  • (g) for a deposit account that has a fixed monthly charge for a service package,

    • (i) the principal features of the package, including the monthly charge, the number and type of permitted transactions per billing cycle, and

    • (ii) the applicable charges for additional transactions described in paragraph (f).

• Marginal note:Generic terms permitted

  (2) A retail association may, for the purpose of providing the information required under paragraphs (1)(f) and (g), group similar types of transactions for which the retail association charges the same amount under a generic term.

Written Disclosure

Marginal note:Deemed time of disclosure

3 For the purpose of subsection 385.1(4) of the Act, if a retail association sends the agreement and information referred to in subsection 385.1(1) of the Act to a customer by mail, they are deemed to have been provided by the retail association to the customer on the fifth day after the post mark date on the agreement and information.

Coming into Force

Marginal note:Coming into force

4 These Regulations come into force on the day on which they are registered.