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Financial Consumer Protection Framework Regulations (SOR/2021-181)

Regulations are current to 2022-07-25 and last amended on 2022-06-30. Previous Versions

Financial Consumer Protection Framework Regulations

SOR/2021-181

BANK ACT

COOPERATIVE CREDIT ASSOCIATIONS ACT

INSURANCE COMPANIES ACT

PROCEEDS OF CRIME (MONEY LAUNDERING) AND TERRORIST FINANCING ACT

TRUST AND LOAN COMPANIES ACT

Registration 2021-08-04

Financial Consumer Protection Framework Regulations

P.C. 2021-805 2021-08-04

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, makes the annexed Financial Consumer Protection Framework Regulations pursuant to

Interpretation

Marginal note:Definitions

 The following definitions apply in these Regulations.

Act

Act means the Bank Act. (Loi)

APR

APR or annual percentage rate means the cost of borrowing for a loan under a credit agreement, expressed as an annual rate on the principal referred to in subsection 47(1). (TAC ou taux annuel du coût d’emprunt)

disbursement charge

disbursement charge means a charge, other than one referred to in subsection 48(1), to recover an expense incurred by an institution to arrange, document, insure or secure a credit agreement. It includes a charge referred to in any of paragraphs 48(2)(c) or (f) to (h). (frais de débours)

insurer

insurer includes a government agency that provides insurance referred to in subsection 627.992(1) of the Act. (assureur)

principal

principal means the amount borrowed under a credit agreement but does not include any cost of borrowing. (capital)

public index

public index means an interest rate, or a variable base rate for an interest rate, that is published at least weekly in a newspaper or magazine of general circulation, or in some media of general circulation or distribution, in areas where natural persons who — for purposes other than business purposes — have entered into credit agreements that are governed by that rate reside. (indice publié)

Marginal note:Interpretation — product or service

 For the purposes of Part XII.2 of the Act, the expression “product or service” does not include a derivative, as defined in subsection 415.2(2) of the Act, or an eligible financial contract, as defined in subsection 415.2(3) of the Act.

PART 1Fair and Equitable Dealings

Responsible Business Conduct

Requirements for Cancelling Agreements

Marginal note:Cancellation period — certain deposit accounts

 For the purposes of paragraph 627.1(1)(b) of the Act, the prescribed period in respect of a deposit account other than a retail deposit account is 14 business days after the day on which the deposit account is opened.

Marginal note:Prescribed products and services

 For the purposes of section 627.11 of the Act, the following products and services are prescribed products and services:

  • (a) optional products or services that are provided on an ongoing basis;

  • (b) principal-protected notes that are issued under an agreement entered into by electronic means or by telephone by an institution that has made a public commitment referred to in paragraph 3(2)(c) of the Financial Consumer Agency of Canada Act to allow an investor to cancel the purchase of a principal-protected note;

  • (c) principal-protected notes that are issued under an agreement that is entered into by means other than those referred to in paragraph (b);

  • (d) loans secured by mortgages on real property;

  • (e) registered products; and

  • (f) prepaid payment products.

Marginal note:Cancellation of retail deposit account

  •  (1) For the purposes of subsection 627.11(1) of the Act, it is a prescribed requirement for the cancellation of an agreement in respect of a retail deposit account that the person notify the institution of the cancellation within 14 business days after the day on which the retail deposit account is opened.

  • Marginal note:Obligations of institution

    (2) For the purposes of subsection 627.11(2) of the Act, the following requirements are prescribed requirements for the cancellation of the agreement:

    • (a) the institution is to close the retail deposit account without charge; and

    • (b) the institution is to refund any charges related to the operation of the retail deposit account, other than interest charges, that are incurred while the account was open.

Marginal note:Cancellation of deposit-type instrument

  •  (1) For the purposes of subsection 627.11(1) of the Act, it is a prescribed requirement for the cancellation of an agreement in respect of a new deposit-type instrument referred to in subsection 627.78(2) of the Act that the person notify the institution of the cancellation within 10 business days after the day on which the instrument is issued.

  • Marginal note:Obligations of institution

    (2) For the purposes of subsection 627.11(2) of the Act, the following requirements are prescribed requirements for the cancellation of the agreement:

    • (a) the institution is to cancel the agreement without charge; and

    • (b) the institution is to repay the principal.

Marginal note:Cancellation of optional product or service

  •  (1) For the purposes of subsection 627.11(1) of the Act, it is a prescribed requirement for the cancellation of an agreement in respect of an optional product or service that the person is to notify the institution of the cancellation.

  • Marginal note:Obligation of institution — timing

    (2) For the purposes of subsection 627.11(2) of the Act, it is a prescribed requirement for the cancellation of the agreement that the institution is to cancel the optional product or service on the day on which the billing cycle ends or 30 days after the notification is received, whichever is earlier.

  • Marginal note:Obligation of institution — credit or refund

    (3) For the purposes of subsection 627.11(2) of the Act, it is a prescribed requirement for the cancellation of the agreement that the institution is to refund or credit the person with the amount determined by the following formula:

    R = A × ((n – m)/n)

    where

    R
    is the amount to be refunded or credited;
    A
    is the amount of any charges that are paid by the person for any part of the optional product or service that is unused as of the day the cancellation takes effect;
    n
    is the period between the imposition of the charges and the time when the optional product or service was, before the cancellation, scheduled to end; and
    m
    is the period between the imposition of the charges and the cancellation.

Marginal note:Cancellation of principal-protected note

 For the purposes of subsection 627.11(1) of the Act, it is a prescribed requirement for the cancellation of an agreement in respect of a principal-protected note referred to in paragraph 4(b) of these Regulations that the person notify the institution of the cancellation within two days after the day on which the agreement is entered into.

Access to Basic Banking Services

Marginal note:Availability

 For the purposes of section 627.21 of the Act, the prescribed amount is $1,500.

Marginal note:Cashing

 For the purposes of paragraph 627.25(1)(c) of the Act, the prescribed amount is $1,750.

Credit

Marginal note:Prepayment

  •  (1) For the purposes of subsection 627.28(4) of the Act, the charges referred to in subsection 48(1) of these Regulations, excluding any interest or discount applicable to the loan and any disbursement charges paid by the person or added to the balance of the loan, are prescribed charges.

  • Marginal note:Refund or credit

    (2) For the purposes of subsection 627.28(4) of the Act, the prescribed amount in relation to a prepayment referred to in paragraph 627.28(3)(a) of the Act is either

    • (a) if the person repays only part of the outstanding balance under the credit agreement, zero; or

    • (b) if the person repays the entire outstanding balance under the credit agreement, the amount determined by the formula

      R = A × ((n – m)/n)

      where

      R
      is the amount to be refunded or credited;
      A
      is the amount of any non-interest charges, except for disbursement charges, paid by the person or added to the balance;
      n
      is the period between the imposition of the non-interest charges and the scheduled end of the term of the loan; and
      m
      is the period between the imposition of the non-interest charges and the prepayment.

Marginal note:Renewal of mortgages — prescribed period

  •  (1) For the purposes of paragraph 627.31(a) of the Act, the prescribed period is the period beginning on the day on which the prescribed information is disclosed to the person under subsection 627.89(6) of the Act and ending on the day on which the credit agreement is renewed.

  • Marginal note:Renewal of mortgages — prescribed day

    (2) For the purposes of paragraph 627.31(b) of the Act, the prescribed day is the day that is 21 days after the day on which the prescribed information is disclosed to the person under subsection 627.89(6) of the Act.

Marginal note:Debt collection practices

 For the purposes of paragraph 627.37(b) of the Act, the debt collection practices set out in the schedule are prescribed debt collection practices.

Complaints Process

Marginal note:Period for dealing with complaints

 For the purposes of paragraph 627.43(1)(a) of the Act, the prescribed period for dealing with a complaint is 56 days after the day on which the complaint is received.

Marginal note:Provision of information after complaint

 For the purposes of paragraph 627.43(4)(b) of the Act, one of the following documents must be used to provide the information referred to in that paragraph:

  • (a) a brochure, statement of account or written statement that contains other information that is required to be disclosed under the Act in respect of an agreement for a product or service or in respect of any other obligation of the institution under a consumer provision; or

  • (b) a separate document.

Marginal note:Conditions for maintaining approval

 For the purposes of paragraph 627.49(m) of the Act, the following are prescribed conditions for the body corporate:

  • (a) it is to accept as a member any institution that makes a request to it for membership;

  • (b) it is to transfer a complaint received by it, along with all related information that is in its possession or control, to another external complaints body if an institution that is a party to the complaint becomes a member of that other body before a final recommendation is made in respect of the complaint;

  • (c) it is to advise, in writing, the parties to a complaint that is transferred to it by another external complaints body that an institution that is a party to the complaint has become a member of the body corporate and that the complaint has been transferred;

  • (d) it is to inform the parties to a complaint about its terms of reference and procedures for dealing with complaints and, on request, to provide the parties with any further information and assistance that is necessary to enable them to understand the requirements of those terms of reference and procedures;

  • (e) it is to deal with complaints in a manner that affects only the parties to the complaints; and

  • (f) it is to consult, at least once a year, its members and any persons who have made complaints to it since the previous consultation with respect to the discharge of its functions and the performance of its activities as an external complaints body.

Marginal note:Provision of information to customers and public

 For the purposes of section 627.65 of the Act, one of the following documents must be used to disclose the information referred to in that section:

  • (a) a brochure, statement of account or written statement that contains other information that is required to be disclosed under the Act in respect of an agreement for a product or service or in respect of any other obligation of the institution under a consumer provision; or

  • (b) a separate document.

PART 2Disclosure and Transparency for Informed Decisions

Key Product Information

General

Marginal note:Disclosure by mail

 If information that must be disclosed under Part XII.2 of the Act is sent by mail, it is deemed to have been disclosed on the fifth business day after the postmark date.

Marginal note:Renewal or rollover

 For the purposes of paragraph 627.6(2)(a) of the Act, the interest rate is disclosed if it is provided directly to the person or indirectly by means of a telephone number or website that can be accessed by the person.

Deposit Accounts, Financial Instruments and Notes

Deposit Accounts

Marginal note:Agreement by telephone

  •  (1) For the purposes of subparagraph 627.55(2)(a)(ii) of the Act, the following information is prescribed information in relation to a deposit account:

    • (a) the annual interest rate;

    • (b) the frequency of interest payments;

    • (c) the manner, if any, in which the balance in the deposit account affects the interest rate;

    • (d) 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;

    • (e) 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;

    • (f) any other circumstance that affects the interest rate;

    • (g) 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;

    • (h) for a deposit account that has a fixed monthly charge for a service package, the key features of the package — including the monthly charge, the number and type of permitted transactions per billing cycle — and the applicable charges for additional transactions described in paragraph (g);

    • (i) the fact that the person 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 after entering into the agreement; and

    • (j) the fact that the person 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.

  • Marginal note:Use of generic terms

    (2) For the purpose of providing the information referred to in paragraphs (1)(g) and (h), an institution may group similar types of transactions for which the institution charges the same amount under a generic term.

Marginal note:Charges for prescribed services

 For the purposes of subparagraph 627.68(b)(i) and subsection 627.72(1) of the Act, the following services are prescribed services:

  • (a) the acceptance of deposits;

  • (b) the acceptance of coins, cheques or Bank of Canada notes for deposit;

  • (c) the issuance of cheques;

  • (d) the certification of cheques;

  • (e) the handling of a cheque presented by a customer that is subsequently returned because there are not sufficient funds;

  • (f) the holding of cheques for deposit;

  • (g) the handling of cheques drawn in the currency of the United States;

  • (h) the processing of a stop payment on a cheque;

  • (i) the handling of a cheque issued by a customer that is subsequently returned because there are not sufficient funds;

  • (j) the supply of coins and Bank of Canada notes;

  • (k) the handling of overdrafts;

  • (l) the transfer of funds between accounts;

  • (m) the supply of account statements;

  • (n) the handling of account confirmations;

  • (o) the conduct of searches related to an account;

  • (p) the provision of information in regard to an account balance;

  • (q) the closing of an account; and

  • (r) the handling of unclaimed balances in inactive accounts.

Marginal note:Opening of deposit account

 For the purposes of paragraph 627.69(1)(d) of the Act, the following information is prescribed information:

  • (a) the frequency of interest payments;

  • (b) the manner, if any, in which the balance in the deposit account affects the interest rate; and

  • (c) any other circumstance that affects the interest rate.

Marginal note:Non-application — subsection 627.72(1) of Act

 Subsection 627.72(1) of the Act does not apply in respect of an increase to a charge applicable to a service referred to in section 21 of these Regulations that is in relation to a deposit account in Canada other than a personal deposit account if the institution and the person agree in writing that the institution will charge an amount other than an amount that the institution is required to disclose under section 627.68 of the Act.

Deposit Insurance

Marginal note:Authorized foreign banks

  •  (1) For the purposes of paragraph 627.75(a) of the Act, the following information is prescribed information:

    • (a) a statement that the authorized foreign bank is authorized to carry on business in Canada under the Act;

    • (b) the name of the authorized foreign bank’s primary supervisor and a statement that the supervisor is responsible for the supervision of the total business and affairs of the authorized foreign bank;

    • (c) a statement that the authorized foreign bank’s business in Canada is supervised by the Office of the Superintendent of Financial Institutions; and

    • (d) the name and address of the Office of the Superintendent of Financial Institutions.

  • Marginal note:Manner of disclosure

    (2) Either the account agreement or a separate document must be used to disclose the information that must be disclosed under paragraph 627.75(a) of the Act.

Financial Instruments and Notes

Marginal note:Agreement by telephone

 For the purposes of subparagraph 627.55(2)(a)(ii) of the Act, the following information is prescribed information in relation to a deposit-type instrument:

  • (a) when interest is calculated and paid under the instrument;

  • (b) whether the instrument may be redeemed prior to maturity and, if so, the effect of early redemption on the interest payable; and

  • (c) if the agreement provides that after the maturity of the instrument a new deposit-type instrument may be issued to the person without a further agreement being entered into, the fact that a new instrument may be issued without a further agreement, the conditions under which a new instrument may be issued without a further agreement and

    • (i) whether its interest rate is fixed or variable, and the rate or method for determining the rate,

    • (ii) its investment period, and

    • (iii) any charges related to its issuance or the cancellation of its issuance.

Marginal note:Availability of information

 For the purposes of section 627.77 of the Act, the following information is prescribed information:

  • (a) the information referred to in paragraphs 627.78(1)(a) to (j) of the Act; and

  • (b) in relation to a principal-protected note, the information referred to in paragraphs 27(a) to (d) of these Regulations.

Marginal note:Issuance of principal-protected note

 For the purposes of paragraph 627.78(1)(k) of the Act, the following information is prescribed information in relation to a principal-protected note:

  • (a) the distinction between principal-protected notes and fixed-rate investments with respect to the levels of risk and return;

  • (b) the circumstances in which a principal-protected note could be an appropriate investment;

  • (c) whether the note may be redeemed before its maturity and, if so, that redemption before maturity may result in the investor receiving less than the principal;

  • (d) the terms and conditions of any secondary market offered by the institution; and

  • (e) that the information referred to in section 26 of these Regulations is available on request and that the information referred to in section 627.8 of the Act is available on request after the note is issued.

Marginal note:Synopsis — principal-protected note

 If an agreement referred to in subsection 627.78(1) of the Act is an agreement that is in relation to a principal-protected note and is entered into in person or by telephone, the institution must ensure that a synopsis of the information that must be disclosed under that subsection is disclosed orally by a person who is knowledgeable about the terms and conditions of the note.

Marginal note:New instrument issued without further agreement

 For the purposes of subsection 627.78(2) of the Act, the information referred to in subsection 627.78(1) of the Act and section 25 of these Regulations is also prescribed information.

Marginal note:Advertisements

 For the purposes of paragraph 627.87(1)(c) of the Act, the following information is prescribed information:

  • (a) if an advertisement gives an example of a situation in which interest would be payable, an example of another situation in which no interest would be payable; and

  • (b) if an advertisement gives an example of a situation in which interest would be payable that is in addition to any minimum interest that is guaranteed, an example of another situation in which only the minimum interest would be payable.

Credit Agreements

General

Marginal note:Non-application — section 627.89 of Act

 Section 627.89 of the Act does not apply in respect of a credit agreement that is entered into under

  • (a) the Canada Student Loans Act; or

  • (b) any Act of Parliament or of the legislature of a province that relates to student loans and that requires the interest rate or the discount that may apply to the borrower to be disclosed to the borrower or to a person to whom a student loan is proposed to be made.

Marginal note:APR

 The APR for a credit agreement is the annual interest rate if the only cost of borrowing is interest.

Marginal note:Disclosure statement

  •  (1) Information that must be disclosed under section 627.89 of the Act must be provided in a disclosure statement that

    • (a) is part of the credit agreement;

    • (b) is part of the application for the credit agreement; or

    • (c) is set out in a separate document.

  • Marginal note:Part of credit agreement

    (2) If the disclosure statement is part of a credit agreement for a loan, line of credit or credit card, then the disclosure statement must be set out in a consolidated manner in a single location and the information box required under subsection 627.57(1) of the Act must be set out at the beginning of the agreement.

  • Marginal note:Separate document

    (3) If the disclosure statement is set out in a separate document then the information box must be set out at the beginning of the statement.

  • Marginal note:Repetition of numbers

    (4) Numbers that are set out in the information box — including numbers that refer to an interest rate, a period, a date or a dollar amount — are not required to be repeated in the disclosure statement but may instead be referenced in it.

  • Marginal note:Assumptions and estimates

    (5) Information in the disclosure statement may be based on an assumption or estimate if the assumption or estimate is reasonable and the information

    • (a) cannot be known by the institution at the time of disclosure; and

    • (b) is identified to the person entering into the agreement as an assumption or estimate.

Marginal note:Time of initial disclosure

 The initial disclosure statement for a credit agreement other than a credit agreement for a loan secured by a mortgage on real property must be provided on or before the earlier of

  • (a) the making of a payment, other than a disbursement charge, and

  • (b) the day on which the credit agreement is entered into.

Marginal note:Initial disclosure — optional services

  •  (1) For the purposes of paragraph 627.89(1)(e) of the Act, the following information is prescribed information in relation to optional services, including insurance services, that are offered on an ongoing basis:

    • (a) that the person may cancel the optional service by notifying the institution that the service is to be cancelled effective as of the day that is the earlier of one month after the day that the disclosure statement was provided to the person and the last day of a notice period provided for in the credit agreement; and

    • (b) that the institution must refund or credit the person with the proportional amount of any charges for the service paid for by the person or added to the balance of the loan, but unused as of the cancellation day referred to in the notice.

  • Marginal note:Provincial laws

    (2) For greater certainty, this section is subject to any provincial laws that apply to the cancellation of the agreement.

Marginal note:Disclosure to two or more persons

  •  (1) Subject to subsections (2) and (3), if a credit agreement is between an institution and two or more natural persons, then the institution must disclose the information that must be disclosed under section 627.89 of the Act to all of those persons.

  • Marginal note:Group disclosure — unanimity

    (2) If all of the persons have consented, orally or in writing, in paper or electronic form, to the disclosure of the information to one of the persons on their behalf, the institution must disclose the information to that person.

  • Marginal note:Group disclosure — no unanimity

    (3) If two or more but not all of the persons have consented, orally or in writing, in paper or electronic form, to the disclosure of the information on their behalf to one of the consenting persons, the institution may disclose the information to that person so long as it also discloses the information to each person that did not consent.

  • Marginal note:Confirmation of consent

    (4) If the consent referred to in subsection (2) or (3) is given orally by a person, the institution must provide confirmation of that consent to the person in writing, in paper or electronic form.

Marginal note:Amendments

  •  (1) For the purposes of paragraph 627.89(5)(a) of the Act, an amendment to the terms or conditions of a credit agreement that changes any information that was disclosed in accordance with subsection 627.89(1) of the Act in the initial disclosure statement is a prescribed amendment.

  • Marginal note:Information

    (2) For the purposes of paragraph 627.89(5)(b) of the Act, any information that is required to update the initial disclosure statement as a result of a change referred to in subsection (1) is prescribed information.

  • Marginal note:Time of disclosure

    (3) The prescribed amendment and any prescribed information must be disclosed in writing not later than 30 days after the day on which the amendment is made.

Loans

Marginal note:Information box — fixed interest loan for fixed amount

 For the purposes of subsection 627.57(1) of the Act, the following information is prescribed information in relation to a fixed interest loan for a fixed amount that is to be repaid on a fixed future date or by instalment payments:

  • (a) the principal of the loan;

  • (b) the applicable annual interest rate and a brief description of how the interest is compounded, if applicable, and charged;

  • (c) the APR, if it differs from the annual interest rate, and a brief description of how it is determined;

  • (d) the number of months or years of the term of the loan and whether the term is open or closed, and a brief explanation of what “open” or “closed,” as applicable, means;

  • (e) the date on which the principal of the loan is to be advanced and the date on which interest is to begin to be charged;

  • (f) the amount of each payment, the date on which each payment is due, a brief description of the components of a payment and the frequency of the payments;

  • (g) the number of months or years of the amortization period, if that period is different from the term of the loan;

  • (h) a brief description of the conditions under which a person may repay a greater portion of the loan than required in any given period without incurring penalty charges for the prepayment of the loan, if applicable;

  • (i) the amount of the penalty charges, if any, for prepayment of the loan and a brief explanation of the manner in which the penalty charges are calculated;

  • (j) the amount of charges for insurance against default on a high-ratio mortgage on real property, if any; and

  • (k) a list of the types and amounts of any other charges, other than interest charges.

Marginal note:Information box — variable interest loan

 For the purposes of subsection 627.57(1) of the Act, the following information is prescribed information in relation to a variable interest loan for a fixed amount that is to be repaid on a fixed future date or by instalment payments:

  • (a) the principal of the loan;

  • (b) the annual interest rate that applies on the date of the initial disclosure statement and a brief description of how the interest is compounded, if applicable, and charged;

  • (c) a brief description of the method for determining the annual interest rate and the date that the determination is made;

  • (d) the APR, if it differs from the annual interest rate, and a brief description of how it is determined;

  • (e) the number of months or years of the term of the loan and whether the term is open or closed, and provide a brief explanation of what “open” or “closed,” as applicable, means;

  • (f) the date on which the principal of the loan is to be advanced and the date on which interest is to begin to be charged;

  • (g) the amount of each payment, based on the annual interest rate that applies on the date of the initial disclosure statement, the date on which each payment is due and a brief description of the components of a payment and the frequency of the payments;

  • (h) the number of months or years of the amortization period, if that period is different from the term of the loan;

  • (i) a brief description of the conditions under which a person may repay a greater portion of the loan than required in any given period without incurring penalty charges for the prepayment of the loan, if applicable;

  • (j) the amount of the penalty charges, if any, for prepayment of the loan and a brief explanation of the manner in which the penalty charges are calculated;

  • (k) the amount of charges for insurance against default on a high-ratio mortgage on real property, if any; and

  • (l) a list of the types and amounts of any other charges, other than interest charges.

Marginal note:Initial disclosure — fixed interest rate loan

  •  (1) For the purposes of paragraph 627.89(1)(e) of the Act, the following information is prescribed information in relation to a fixed interest rate loan for a fixed amount that is to be repaid on a fixed future date or by instalment payments:

    • (a) the principal of the loan;

    • (b) the amount that represents the cost of borrowing within the meaning of section 48 of these Regulations over the term of the loan;

    • (c) the amount of the advance, or any advances, of the principal and when it is, or they are, to be made;

    • (d) the total amount of all payments;

    • (e) the term of the loan and the period of amortization if different from the term;

    • (f) the annual interest rate and the circumstances under which it is compounded, if any;

    • (g) the APR, if it differs from the annual interest rate;

    • (h) the date on and after which interest is charged and information concerning any period during which interest does not accrue;

    • (i) the amount of each payment and when it is due;

    • (j) the fact that each payment made on a loan must be applied first to the accumulated cost of borrowing and then to the outstanding principal;

    • (k) information about any optional service in relation to the credit agreement that the person accepts, the charges for each optional service and the conditions under which the person may cancel the service if that information is not disclosed in a separate statement before the optional service is provided;

    • (l) a description of any components that comprise a formula to calculate a rebate, charge or penalty in the event that the person exercises the right to repay the amount borrowed before the maturity of the loan and, if paragraph 627.28(3)(a) of the Act applies in respect of the loan, the formula set out in subsection 11(2) of these Regulations;

    • (m) any default charges that may be imposed under section 627.3 of the Act;

    • (n) a description of the property, if any, over which the institution takes a security interest under the credit agreement;

    • (o) any charge for a broker, if the broker’s fees are included in the amount borrowed and are paid directly by the institution to the broker;

    • (p) the existence of a fee to discharge a security interest and the amount of the fee on the day that the statement was provided; and

    • (q) the nature and amount of any other charge, other than interest charges.

  • Marginal note:Subsequent disclosure

    (2) If the missing of a scheduled instalment payment or the imposition of a default charge for a missed scheduled instalment payment increases the outstanding balance of the loan with the result that each subsequently scheduled instalment payment does not cover the interest accrued during the period for which it was scheduled, then, for the purposes of subsection 627.89(4) of the Act, a description of this situation and its consequences is prescribed information.

  • Marginal note:Time and manner of disclosure

    (3) The prescribed information referred to in subsection (2) must be disclosed in a statement that is provided not later than 30 days after the day on which the payment is missed or the default charge is imposed.

Marginal note:Initial disclosure — variable interest loan

  •  (1) For the purposes of paragraph 627.89(1)(e) of the Act, the following information is prescribed information in relation to a variable interest rate loan for a fixed amount that is to be repaid on a fixed future date or by instalment payments:

    • (a) the information referred to in subsection 40(1) of these Regulations;

    • (b) the annual interest rate that applies on the date of the disclosure;

    • (c) the method for determining the annual interest rate and when that determination is made;

    • (d) the amount of each payment based on the annual interest rate that applies on the date of the disclosure and the dates when those payments are due;

    • (e) the total amount of all payments and of the cost of borrowing based on that annual interest rate;

    • (f) if the loan is to be paid by instalment payments and the amount to be paid is not adjusted automatically to reflect changes in the annual interest rate that apply to each instalment payment,

      • (i) the triggering annual interest rate above which the amount paid under a scheduled instalment payment on the initial principal does not cover the interest due on the instalment payment, and

      • (ii) the fact that negative amortization is possible; and

    • (g) if the loan does not have regularly scheduled payments,

      • (i) the conditions that must occur for the entire outstanding balance, or part of it, to become due, or

      • (ii) the provisions of the credit agreement that set out those conditions.

  • Marginal note:Subsequent disclosure — public index

    (2) If the variable interest rate for the loan is determined by adding or subtracting a fixed percentage interest rate to or from a public index that is a variable rate, then, for the purposes of subsection 627.89(4) of the Act, the following information is prescribed information:

    • (a) the annual interest rate at the beginning and end of the period covered by the disclosure;

    • (b) the outstanding balance at the beginning and end of the period covered by the disclosure; and

    • (c) the amount of each instalment payment due under a payment schedule and the time when each payment is due, based on the annual interest rate that applies at the end of the period covered by the disclosure.

  • Marginal note:Frequency and manner of disclosure

    (3) The prescribed information referred to in subsection (2) must be disclosed in a statement that is provided at least once every 12 months.

  • Marginal note:Subsequent disclosure — other method

    (4) If the variable interest rate for the loan is determined by a method other than the one referred to in subsection (2), then, for the purposes of subsection 627.89(4) of the Act, the following information is prescribed information:

    • (a) the new annual interest rate and the date on which it takes effect; and

    • (b) for payments that are affected by the new annual interest rate, the amount of each instalment payment and the time when each payment is due.

  • Marginal note:Time and manner of disclosure

    (5) The prescribed information referred to in subsection (4) must be disclosed in a statement that is provided not later than 30 days after the day on which the institution increases the annual interest rate by more than 1% above the most recently disclosed rate.

Marginal note:Amendments — loan for fixed amount

  •  (1) For the purposes of paragraph 627.89(5)(a) of the Act, an amendment to a schedule for instalment payments for a loan for a fixed amount is a prescribed amendment.

  • Marginal note:Information

    (2) For the purposes of paragraph 627.89(5)(b) of the Act, the amended schedule as well as any increase in the total amount to be paid or in the cost of borrowing is prescribed information.

  • Marginal note:Time of disclosure

    (3) The prescribed amendment and the prescribed information must be disclosed in writing not later than 30 days after the day on which the amendment is made.

Marginal note:Mortgages

 Sections 44 to 46 apply in respect of a credit agreement for a loan secured by a mortgage on real property.

Marginal note:Time of initial disclosure

  •  (1) The initial disclosure statement for a credit agreement must be provided on or before the earlier of

    • (a) the making of a payment, other than a disbursement charge, and

    • (b) two clear business days before the day on which the credit agreement is entered into.

  • Marginal note:Exception

    (2) Paragraph (1)(b) does not apply if

    • (a) the person entering into the credit agreement consents to being provided with the initial disclosure statement on or before the day on which the credit agreement is entered into;

    • (b) the person entering into the credit agreement obtains independent legal advice;

    • (c) a rescission period of at least two clear business days is set out in the credit agreement; or

    • (d) favourable terms that reduce the cost of borrowing are set out in the credit agreement.

Marginal note:Renewal

  •  (1) For the purposes of subsection 627.89(6) of the Act, the following information is prescribed information in relation to a credit agreement that will be renewed on a specified date:

    • (a) the information referred to in section 40 of these Regulations if the credit agreement is for a fixed interest rate;

    • (b) the information referred to in section 41 of these Regulations if the credit agreement is for a variable interest rate;

    • (c) a statement that no change that increases the cost of borrowing will be made to the credit agreement between the day on which the statement is disclosed by the institution and the day on which the credit agreement will be renewed; and

    • (d) a statement that the person’s rights under the credit agreement continue, and the renewal does not take effect, until the day that is the later of the specified date and the day that is 21 days after the day on which the person receives the statement.

  • Marginal note:Time of disclosure

    (2) The prescribed information must be disclosed by providing a disclosure statement at least 21 days before the specified date.

Marginal note:Non-renewal

  •  (1) If an institution does not intend to renew a credit agreement after its term ends, then, for the purposes of subsection 627.89(6) of the Act, that fact is prescribed information.

  • Marginal note:Time of disclosure

    (2) The fact must be disclosed at least 21 days before the end of the term.

Marginal note:Calculating borrowing costs

  •  (1) For the purposes of section 627.9 of the Act, the following formula is, subject to subsections (3) and (4), the prescribed manner for calculating the cost of borrowing for a loan other than a loan obtained through the use of a credit card or line of credit:

    APR = (C/(T × P)) × 100

    where

    APR
    is the annual percentage rate cost of borrowing;
    C
    is an amount that represents the cost of borrowing within the meaning of section 48 of these Regulations over the term of the loan;
    T
    is the term of the loan in years, expressed to at least two decimal points of significance; and
    P
    is the average of the principal of the loan outstanding at the end of each period for the calculation of interest under the credit agreement, before subtracting any payment that is due at that time.
  • Marginal note:Calculation rules

    (2) The following rules apply in respect of the calculation:

    • (a) the APR may be rounded off to the nearest eighth of a per cent;

    • (b) each instalment payment made on a loan must be applied first to the accumulated cost of borrowing and then to the outstanding principal;

    • (c) a period of one month is 1/12 of a year;

    • (d) a period of one week is 1/52 of a year;

    • (e) a period of one day is 1/365 of a year; and

    • (f) a credit agreement for an amount that comprises, in whole or in part, an outstanding balance from a prior credit agreement is a new credit agreement for the purpose of the calculation.

  • Marginal note:Variable interest rate

    (3) If the annual interest rate underlying the calculation is variable over the period of the loan, that annual interest rate must be set as the annual interest rate that applies on the day that the calculation is made.

  • Marginal note:No instalment payments

    (4) If there are no instalment payments under the agreement, then the APR must be calculated on the basis that the outstanding principal is to be repaid in one lump sum at the end of the term of the loan.

Marginal note:Charges included in cost of borrowing

  •  (1) Subject to subsection (2), the cost of borrowing for a loan under a credit agreement, other than a loan obtained through the use of a credit card or line of credit, consists of all the costs of borrowing under the loan over its term, in particular the interest or discount that applies to the loan, and includes the following charges:

    • (a) administrative charges, including charges for services, transactions or any other activity in relation to the loan;

    • (b) charges for the services, or disbursements, of a lawyer or notary that an institution required the borrower to retain;

    • (c) insurance charges other than those excluded under paragraphs (2)(a), (f) and (h);

    • (d) charges for a broker, if the broker’s fees are included in the amount borrowed and are paid directly by the institution to the broker; and

    • (e) charges for appraisal, inspection or surveying services, other than those mentioned in paragraph (2)(g), related to property that is security for a loan, if those services are required by the institution.

  • Marginal note:Charges not included in cost of borrowing

    (2) The cost of borrowing for a loan does not include any of the following fees or charges:

    • (a) charges for insurance on the loan if

      • (i) the insurance is optional, or

      • (ii) the borrower is its beneficiary and the amount insured reflects the value of an asset that is security for the loan;

    • (b) charges for an overdraft;

    • (c) fees paid to register documents or obtain information from a public registry about security interests related to property given as security;

    • (d) penalty charges for the prepayment of a loan;

    • (e) charges for the services, or disbursements, of a lawyer or notary, other than those mentioned in paragraph (1)(b);

    • (f) charges for insurance against defects in title to real or immovable property, if the insurance is paid for directly by the borrower;

    • (g) charges for appraisal, inspection or surveying services provided directly to the borrower in relation to property that is security for a loan;

    • (h) charges for insurance against default on a high-ratio mortgage on real property;

    • (i) fees to maintain a tax account that are required for a mortgage referred to in paragraph (h) or that are optional;

    • (j) any fee to discharge a security interest; and

    • (k) default charges.

  • Marginal note:Definition of borrower

    (3) In this section, borrower includes a person to whom a loan is proposed to be made.

Marginal note:Waiver offer

 An institution that, under an agreement for a loan for a fixed amount, offers to waive a payment without waiving the accrual of interest during the period covered by the payment must, in a prominent manner, disclose in the offer that interest will continue to accrue during that period if the offer is accepted.

Marginal note:Advertisements

  •  (1) For the purposes of section 627.91 of the Act, a representation of the interest rate, amount of any payment or amount of any non-interest charge in relation to a loan involving a fixed amount of credit is a prescribed representation.

  • Marginal note:Information

    (2) For the purposes of section 627.91 of the Act, the APR and the term of the loan are prescribed information.

  • Marginal note:Use of examples

    (3) If the APR or the term of the loan is not the same for all loans to which the advertisement relates, its disclosure must be based on an example of a loan that fairly depicts all those loans and is identified as a representative example of them.

  • Marginal note:Presentation of APR

    (4) For the purposes of section 627.63 of the Act, the APR must be presented at least as prominently as the prescribed representation and in the same manner, whether visually or aurally, or both.

Marginal note:Advertisements — transactions financed by institution

  •  (1) If an institution finances a transaction depicted in an advertisement that involves a representation, express or implied, that a period of a loan is free of any interest charges, the institution must ensure that the advertisement discloses whether or not interest, due after the period, accrues during the period.

  • Marginal note:Presentation of accrual of interest

    (2) The institution must ensure that the disclosure of whether or not interest, due after the period, accrues during the period is presented prominently and, in relation to an express representation, is presented equally as prominently as the representation.

  • Marginal note:Disclosure of conditions

    (3) If interest does not accrue during the period, the institution must also ensure that the advertisement discloses any conditions that apply to the forgiving of the accrued interest and the APR, or the annual interest rate in the case of credit cards or lines of credit, for a period when those conditions are not met.

Lines of Credit

Marginal note:Information box

 For the purposes of subsection 627.57(1) of the Act, the following information is prescribed information for a line of credit:

  • (a) the initial credit limit, if it is known on the date of the disclosure statement;

  • (b) the annual interest rate, or, if it is a variable rate, a brief description of the method for determining it;

  • (c) the date on and after which interest accrues as well as information respecting the grace period or, if no grace period applies, an indication to that effect;

  • (d) the amount of the minimum payment required in each payment period and a brief description of the method for determining the amount of the minimum payment;

  • (e) the foreign currency conversion rate, a brief description of how it is determined and the date on which it is applied;

  • (f) the amount of any non-interest charges that are levied on an annual basis and the date on which they are levied or, if no annual charges are levied, an indication to that effect; and

  • (g) a list of the types and amounts of any other non-interest charges that indicates the dates on which they are applied.

Marginal note:Non-application — paragraph 627.89(1)(a) of Act

 Paragraph 627.89(1)(a) of the Act does not apply in respect of a line of credit.

Marginal note:Initial disclosure

  •  (1) For the purposes of paragraph 627.89(1)(e) of the Act, the following information is prescribed information in relation to a line of credit:

    • (a) the initial credit limit, if it is known at the time the disclosure is made;

    • (b) the annual interest rate, or the method for determining it if it is variable;

    • (c) the nature and amounts of any non-interest charges;

    • (d) the minimum payment during each payment period or the method for determining it;

    • (e) each period for which a statement of account is to be provided;

    • (f) the date on and after which interest accrues and information concerning any grace period that applies;

    • (g) particulars of the charges or penalties referred to in paragraph 627.89(1)(c) of the Act, including any default charges that may be imposed under section 627.3 of the Act;

    • (h) a description of the property, if any, over which the institution takes a security interest under the credit agreement;

    • (i) information about any optional service in relation to the credit agreement that the person accepts, the charges for each optional service and the conditions under which the person may cancel the service if that information is not disclosed in a separate statement before the optional service is provided;

    • (j) a local or toll-free telephone number, or a telephone number with a prominent indication that collect calls are accepted, that the person may use to get information about the account during the institution’s regular business hours; and

    • (k) any charge for a broker, if the broker’s fees are included in the amount borrowed and are paid directly by the institution to the broker.

  • Marginal note:Subsequent disclosure of credit limit

    (2) If the initial credit limit is not known on the day on which the initial disclosure statement is provided, then, for the purposes of subsection 627.89(4) of the Act, the credit limit is prescribed information.

  • Marginal note:Manner of disclosure

    (3) The prescribed information referred to in subsection (2) must be disclosed in

    • (a) the first statement of account provided to the person; or

    • (b) a separate statement that the person receives on or before the date on which they receive the first statement of account.

Marginal note:Subsequent disclosure

  •  (1) For the purposes of subsection 627.89(4) of the Act, the following information is prescribed information in relation to a line of credit:

    • (a) the period covered by the disclosure and the opening and closing balances in the period;

    • (b) an itemized statement of account that discloses each amount credited or charged, including interest, and the dates when those amounts were posted to the account;

    • (c) the sum for payments and the sum for credit advances and non-interest and interest charges;

    • (d) the annual interest rate that applied on each day in the period and the total of interest charged under those rates in the period;

    • (e) the credit limit and the amount of credit available at the end of the period;

    • (f) the minimum payment and its due date;

    • (g) the person’s rights and obligations regarding any billing error that may appear in the statement of account; and

    • (h) a local or toll-free telephone number, or a telephone number with a prominent indication that collect calls are accepted, that the person may use to get information about the account during the institution’s regular business hours.

  • Marginal note:Frequency of disclosure

    (2) Subject to subsections (3) and (4), the prescribed information must be disclosed in a disclosure statement that is provided at least once a month.

  • Marginal note:No statement required

    (3) The disclosure statement need not be provided for a period in which there are no advances or payments and

    • (a) there is no outstanding balance at the end of the period; or

    • (b) the person has received notice that their credit agreement has been suspended or cancelled due to default and the institution has demanded payment of the outstanding balance.

  • Marginal note:Quarterly statement

    (4) The disclosure statement may be provided once in a three-month period, either in respect of that period or the last month of it, if, during that period,

    • (a) there have been no advances or payments;

    • (b) there is an outstanding balance of less than $10; and

    • (c) no interest or fee is being charged or accrued.

Marginal note:Waiver offer

 An institution that, under a credit agreement for a line of credit, offers to waive a payment must, in a prominent manner, disclose in the offer whether interest will continue to accrue during any period covered by the offer if it is accepted.

Marginal note:Advertisements

  •  (1) For the purposes of section 627.91 of the Act, a representation of the annual interest rate, amount of any payment or amount of any non-interest charge in relation to a loan involving a line of credit is a prescribed representation.

  • Marginal note:Information

    (2) For the purposes of section 627.91 of the Act, the annual interest rate on the date of the advertisement and any initial or periodic non-interest charges are prescribed information.

  • Marginal note:Presentation of information

    (3) For the purposes of section 627.63 of the Act, the prescribed information must be presented at least as prominently as the prescribed representation and in the same manner, whether visually or aurally, or both.

Credit Cards

Marginal note:Agreement by telephone

 For the purposes of subparagraph 627.55(2)(a)(ii) of the Act, the information referred to in subsection 65(1) of these Regulations is prescribed information in relation to an application form for a credit card.

Marginal note:Information box — application form

 For the purposes of subsection 627.57(1) of the Act, the following information is prescribed information in relation to an application form for a credit card:

  • (a) the applicable annual interest rate or, if it is a variable rate that is determined by adding or subtracting a fixed percentage interest rate to or from a public index, the name of the public index and the fixed percentage rate to be added to or subtracted from that index and the date on which that rate takes effect;

  • (b) the length of the interest-free grace period in days, if any, and the circumstances in which it applies or, if no interest-free grace period applies, an indication to that effect;

  • (c) the amount of the minimum payment required in each payment period and a brief description of the method for determining the amount of the minimum payment;

  • (d) the foreign currency conversion rate, a brief description of how it is determined and the date on which it is applied;

  • (e) the amount of any non-interest charges that are levied on an annual basis and the date on which they are levied or, if no annual charges are levied, an indication to that effect; and

  • (f) a list of the types and amounts of any other non-interest charges that indicates the dates on which they are applied.

Marginal note:Information box — agreement

 For the purposes of subsection 627.57(1) of the Act, the following information is prescribed information in relation to a credit card:

  • (a) the initial credit limit, if it is known on the date of the disclosure statement;

  • (b) the applicable annual interest rate or, if it is a variable rate that is determined by adding or subtracting a fixed percentage interest rate to or from a public index, the name of the public index and the fixed percentage rate to be added to or subtracted from that index and the date on which that rate takes effect;

  • (c) the length of the interest-free grace period in days, if any, and the circumstances in which it applies or, if no interest-free grace period applies, an indication to that effect;

  • (d) a brief description of the manner in which interest is calculated and the date on which that calculation is made;

  • (e) the amount of the minimum payment required in each payment period and a brief description of the method for determining the amount of the minimum payment;

  • (f) the foreign currency conversion rate, a brief description of how it is determined and the date on which it is applied;

  • (g) the amount of any non-interest charges that are levied on an annual basis and the date on which they are levied or, if no annual charges are levied, an indication to that effect; and

  • (h) a list of the types and amounts of any other non-interest charges that indicates the dates on which they are applied.

Marginal note:Solicitation of applications

 If an institution that issues credit cards solicits applications for them in person, by mail, by telephone or by any electronic means, the institution must disclose the information referred to in subsection 65(1) at the time of solicitation.

Marginal note:Initial disclosure statement

 If the initial disclosure statement for a credit card is part of the application for its issuance, then the initial disclosure statement must be set out in a consolidated manner in a single location and the information box required under subsection 627.57(1) of the Act must be set out at the beginning of the application.

Marginal note:Non-application — paragraph 627.89(1)(a) of Act

 Paragraph 627.89(1)(a) of the Act does not apply in respect of a credit card.

Marginal note:Initial disclosure

  •  (1) For the purposes of paragraph 627.89(1)(e) of the Act, the following information is prescribed information in relation to a credit card:

    • (a) the information referred to in paragraphs 54(1)(a) and (c) to (k) of these Regulations;

    • (b) the manner in which interest is calculated and the information referred to in paragraphs 65(1)(a) and (b) of these Regulations;

    • (c) if the person is required by the credit agreement to pay the outstanding balance in full on receiving a statement of account,

      • (i) a mention of that requirement,

      • (ii) the grace period by the end of which the person must have paid that balance, and

      • (iii) the annual interest rate charged on any outstanding balance not paid when due;

    • (d) a statement that, if the credit card, credit card account information or personal authentication information created or adopted in relation to the credit card or credit card account is used in an unauthorized manner, the maximum liability to the person is $50 unless the person has demonstrated gross negligence or, in Quebec, gross fault in safeguarding the credit card, credit card account information or personal authentication information; and

    • (e) a statement that, if the person reports to the institution that the credit card, account information of the credit card or the personal authentication information created or adopted in relation to the credit card or credit card account has been lost or stolen or is otherwise at risk of being used in an unauthorized manner, the person will not be liable for any unauthorized use following the receipt of that report.

  • Marginal note:Subsequent disclosure of credit limit

    (2) If the initial credit limit is not known on the day on which the initial disclosure statement is provided, then, for the purposes of subsection 627.89(4) of the Act, the credit limit is prescribed information.

  • Marginal note:Manner of disclosure

    (3) The prescribed information referred to in subsection (2) must be disclosed in

    • (a) the first statement of account provided to the person; or

    • (b) a separate statement that the person receives on or before the date on which the person receives the first statement of account.

Marginal note:Application forms

  •  (1) For the purposes of subparagraph 627.89(3)(a)(iv) of the Act, the following information is prescribed information in relation to an application form for a credit card:

    • (a) the annual interest rate if it is a credit card with a fixed interest rate;

    • (b) the public index and the fixed percentage rate to be added to or subtracted from it, if the credit card is a credit card with a variable interest rate that is determined by adding or subtracting a fixed percentage interest rate to or from a public index; and

    • (c) the amount of any non-interest charges.

  • Marginal note:Exception

    (2) This section does not apply if the information box required under subsection 627.57(1) of the Act is included in the application form or in the related document prepared by the institution for the issuance of the credit card.

Marginal note:Subsequent disclosure

  •  (1) For the purposes of subsection 627.89(4) of the Act, the following information is prescribed information in relation to a credit card:

    • (a) the information referred to in paragraphs 55(1)(a) and (d) to (h) of these Regulations;

    • (b) an itemized statement of account that describes each transaction and discloses each amount credited or charged, including interest, and the dates when those amounts were posted to the account or that permits the person to verify each transaction described by linking it with a transaction record provided to the person;

    • (c) the amount that the person must pay, on or before a specified due date, in order to have the benefit of a grace period;

    • (d) the sum for payments and the sum for purchases, credit advances and interest and non-interest charges;

    • (e) subject to subsection (3), an estimate of the length of time in months and years that would be required to pay in full the outstanding balance set out in the disclosure, based on the assumption that

      • (i) the minimum payment set out in that statement and in each subsequent disclosure will be made on its corresponding due date,

      • (ii) the annual interest rate that applies on the date of the disclosure in respect of purchases of goods or services or that, based on the information available on that date, is expected to apply in respect of such purchases after a period during which a promotional or special introductory interest rate applies, will be applied to the outstanding balance until it is paid,

      • (iii) the outstanding balance is rounded up to the nearest hundred dollars for the purpose of arriving at that estimate, and

      • (iv) a year is considered to consist of not less than 360 days and not more than 366 days; and

    • (f) if the annual interest rate that applies on the date of the disclosure, other than a variable interest rate disclosed to the person under subparagraph 627.89(3)(a)(iv) of the Act or an interest rate disclosed to the person under paragraph 627.89(5)(b) of the Act, could increase in the next period, the circumstances that would give rise to that increase and any new interest rate that would apply in the next period as a result of the increase.

  • Marginal note:Frequency of disclosure

    (2) Subject to subsections (4) and (5), the prescribed information must be disclosed as a statement that is provided at least once a month.

  • Marginal note:No estimate required

    (3) The estimate referred to in paragraph (1)(e) is not required to be provided if the person is required to pay the outstanding balance in full on receiving a statement of account.

  • Marginal note:No statement required

    (4) For the purposes of subsection 627.34(1) of the Act, the statement need not be provided for a period during which there have been no advances or payments and

    • (a) there is no outstanding balance at the end of the period; or

    • (b) the person has received notice that their credit agreement has been suspended or cancelled due to default and the institution has demanded payment of the outstanding balance.

  • Marginal note:Quarterly statement

    (5) For the purposes of subsection 627.34(1) of the Act, the statement may be provided once in a three-month period, either in respect of that period or in respect of the last month of it, if, during that period,

    • (a) there have been no advances or payments;

    • (b) there is an outstanding balance of less than $10; and

    • (c) no interest or fee is being charged or accrued.

Marginal note:Amendments

  •  (1) For the purposes of paragraph 627.89(5)(a) of the Act, an amendment to the terms or conditions of a credit agreement for a credit card that changes any information that was disclosed in accordance with subsection 627.89(1) of the Act in the initial disclosure statement is a prescribed amendment. This section does not, however, apply in respect of an amendment referred to in subsection 68(1) of these Regulations or a change in a variable interest rate referred to in paragraph 65(1)(b) of these Regulations as a result of a change in the public index referred to in that paragraph.

  • Marginal note:Information

    (2) For the purposes of paragraph 627.89(5)(b) of the Act, any information that is required to update the initial disclosure statement as a result of an amendment referred to in subsection (1) is prescribed information.

  • Marginal note:Time of disclosure

    (3) Despite subsection 37(3), the prescribed amendment and any prescribed information must be disclosed in writing 30 days or more before the amendment takes effect.

Marginal note:Other amendments

  •  (1) For the purposes of paragraph 627.89(5)(a) of the Act, the following amendments are prescribed amendments in relation to a credit card:

    • (a) a change in the credit limit;

    • (b) an extension to the grace period;

    • (c) a decrease in non-interest charges or default charges referred to in paragraphs 54(1)(c) or (g) of these Regulations;

    • (d) a change concerning information about any optional service in relation to the credit agreement that is referred to in paragraph 54(1)(i) of these Regulations; and

    • (e) a decrease in the fixed interest rate or a decrease in the fixed percentage interest rate referred to in paragraph 65(1)(a) or (b) of these Regulations.

  • Marginal note:Information

    (2) For the purposes of paragraph 627.89(5)(b) of the Act, any information that is required to update the initial disclosure statement as a result of a prescribed amendment is prescribed information.

  • Marginal note:Time of disclosure

    (3) Despite subsection 37(3), a prescribed amendment and the prescribed information must be disclosed not later than the day on which the first subsequent periodic disclosure statement is provided after the amendment is made.

Marginal note:Waiver offer

 An institution that, under a credit agreement for a credit card, offers to waive a payment must, in a prominent manner, disclose in the offer whether interest will continue to accrue during any period covered by the offer if it is accepted.

Marginal note:Advertisements

  •  (1) For the purposes of section 627.91 of the Act, a representation of the annual interest rate, amount of any payment or amount of any non-interest charge in relation to a credit card is a prescribed representation.

  • Marginal note:Information

    (2) For the purposes of section 627.91 of the Act, the annual interest rate on the date of the advertisement and any initial or periodic non-interest charges are prescribed information.

  • Marginal note:Presentation of information

    (3) For the purposes of section 627.63 of the Act, the prescribed information must be presented at least as prominently as the prescribed representation and in the same manner, whether visually or aurally, or both.

Prepaid Payment Products

Marginal note:Agreement by telephone

 For the purposes of subparagraph 627.55(2)(a)(i) of the Act, the information referred to in paragraphs 627.92(1)(a) and (d) to (h) of the Act is prescribed information in relation to the issuance of a prepaid payment product.

Marginal note:Information box

  •  (1) For the purposes of subsection 627.57(1) of the Act, the information referred to in paragraph 627.92(1)(f) of the Act is prescribed information in relation to the issuance of a prepaid payment product.

  • Marginal note:Exterior packaging

    (2) If the prepaid payment product has exterior packaging, the institution must ensure that the information box referred to in subsection 627.57(1) of the Act appears prominently on the exterior packaging.

Marginal note:Issuance

 For the purposes of paragraph 627.92(1)(j) of the Act, the following information is prescribed information:

  • (a) the prepaid payment product’s terms and conditions, including the person’s rights and responsibilities with respect to a lost or stolen prepaid payment product;

  • (b) a description of how the person can verify the balance of the funds loaded on the prepaid payment product; and

  • (c) a description of how the person may, in certain circumstances, use funds loaded on the prepaid payment product towards partial payment of a purchase.

Mortgage Insurance

Coverage and Business Arrangements

Marginal note:Coverage and calculation of charges

 For the purposes of subsection 627.992(1) of the Act, the following information is prescribed information:

  • (a) the coverage provided by the insurance, including which party is protected by the insurance and which party pays for it; and

  • (b) the manner in which the amount that the institution is being charged by the insurer for the insurance is calculated.

Marginal note:Business arrangements

  •  (1) If an institution enters into an arrangement with an insurer to receive payments or benefits from the insurer and the insurer also provides the institution with insurance, then, for the purposes of subsection 627.992(1) of the Act, information that relates to all of the institution’s business arrangements with the insurer in respect of that insurance is prescribed information.

  • Marginal note:Mandatory contents

    (2) The prescribed information must include

    • (a) the nature of the business arrangements;

    • (b) any payments or benefits referred to in any of sections 76, 77, 80, 81, 84 or 85 that are received directly or indirectly by the institution from the insurer or any of its affiliates; and

    • (c) any payments or benefits referred to in any of sections 78, 82 or 86 that are expected to be received directly or indirectly by the institution from the insurer or any of its affiliates.

  • Marginal note:Manner of disclosure

    (3) The prescribed information must be disclosed in a single document.

  • Marginal note:Exception

    (4) Subsection (1) does not apply in respect of a business arrangement entered into by the institution to provide the insurer with products and services that are offered by the institution to its customers and to the public in the normal course of business.

Payments and Benefits

Marginal note:Receipt on per residential mortgage basis

 If an institution receives payments or benefits in respect of insurance from an insurer under an arrangement referred to in subsection 75(1) of these Regulations on a per residential mortgage basis, then, for the purposes of subsection 627.992(1) of the Act, that fact is prescribed information.

Marginal note:Amount by activity — other basis

 If, on the first day of a fiscal quarter, an institution has received, in any of the first four fiscal quarters of the preceding five fiscal quarters, payments or benefits in respect of insurance from an insurer under an arrangement referred to in subsection 75(1) of these Regulations on a basis other than that referred to in section 76 of these Regulations, then, for the purposes of subsection 627.992(1) of the Act and in relation to each type of activity that is the subject of the payments or benefits, the total amount, expressed in dollars, of the payments or benefits received from the insurer in those first four fiscal quarters is prescribed information.

Marginal note:Expected amount by activity — other basis

 If, on the first day of a fiscal quarter, an institution has not received, in any of the first four fiscal quarters of the preceding five fiscal quarters, any payments or benefits in respect of insurance from an insurer under an arrangement referred to in subsection 75(1) of these Regulations but the institution expects to receive them from an insurer in that fiscal quarter, or in any of the three following fiscal quarters, on a basis other than that referred to in section 76 of these Regulations, then, for the purposes of subsection 627.992(1) of the Act and in relation to each type of activity that is the subject of the payments or benefits, the total amount, expressed in dollars, of the payments or benefits that the institution expects to receive from that insurer in that fiscal quarter and the three following fiscal quarters is prescribed information.

Marginal note:Manner of disclosure

 Information that must be disclosed under subsection 627.992(2) of the Act but is not prescribed information must be disclosed in a document that is separate from other documents provided to the person in relation to the agreement.

Marginal note:Amount by activity — per residential mortgage basis

 If an institution receives payments or benefits in respect of insurance from an insurer under an arrangement referred to in subsection 75(1) of these Regulations on a per residential mortgage basis, then, for the purposes of subsection 627.992(2) of the Act and in relation to each type of activity that is the subject of the payments or benefits, the amount of each of the payments or benefits, expressed in dollars, is prescribed information.

Marginal note:Amount charged — other basis

 If, on the first day of a fiscal quarter, an institution has, in any of the first four fiscal quarters of the preceding five fiscal quarters, received payments or benefits in respect of insurance from an insurer under an arrangement referred to in subsection 75(1) of these Regulations on a basis other than that referred to in section 76 of these Regulations, then, for the purposes of subsection 627.992(2) of the Act, the amount, expressed in dollars, that is determined by multiplying the amount that the institution charges the person for insurance by each of the percentages of the total amount paid to the insurer by the institution in respect of policies and guarantees in those first four fiscal quarters is prescribed information.

Marginal note:Expected amount charged — other basis

 If, on the first day of a fiscal quarter, an institution has not received, in any of the first four fiscal quarters of the preceding five fiscal quarters, any payments or benefits in respect of insurance from an insurer under an arrangement referred to in subsection 75(1) of these Regulations, but the institution expects to receive them from an insurer in that fiscal quarter, or in any of the three following fiscal quarters, on a basis other than that referred to in section 76 of these Regulations, then, for the purposes of subsection 627.992(2) of the Act, the amount, expressed in dollars, that is determined by multiplying the amount that the institution charges the person for insurance by each of the percentages of the total amount expected to be paid to the insurer by the institution in respect of the policies and guarantees in that fiscal quarter and the three following fiscal quarters is prescribed information.

Marginal note:Manner of disclosure

 The prescribed information referred to in sections 80 to 82 must be disclosed in a document that is separate from other documents provided to the person in relation to the agreement.

Marginal note:Percentage of amount charged — per residential mortgage basis

 If an institution receives payments or benefits in respect of insurance from an insurer under an arrangement referred to in subsection 75(1) of these Regulations on a per residential mortgage basis, then, for the purposes of subsection 627.992(2) of the Act, the amount of each of those payments or benefits expressed as a percentage of the amount that the institution charges the person for insurance is prescribed information.

Marginal note:Amounts paid by insurer — other basis

 If, on the first day of a fiscal quarter, an institution has received, in any of the first four fiscal quarters of the preceding five fiscal quarters, payments or benefits in respect of insurance from an insurer under an arrangement referred to in subsection 75(1) of these Regulations on a basis other than that referred to in section 76 of these Regulations, then, for the purposes of subsection 627.992(2) of the Act and in relation to each type of activity that is the subject of the payments or benefits, the amount of each of the payments or benefits, expressed both in dollars and as a percentage of the total amount paid to the insurer by the institution in respect of policies and guarantees in those first four fiscal quarters, is prescribed information.

Marginal note:Percentage of expected amount — other basis

 If, on the first day of a fiscal quarter, an institution has not received, in any of the first four fiscal quarters of the preceding five fiscal quarters, any payments or benefits in respect of insurance from an insurer under an arrangement referred to in subsection 75(1) of these Regulations, but the institution expects to receive them from an insurer in that fiscal quarter, or in any of the three following fiscal quarters, on a basis other than that referred to in section 76 of these Regulations, then, for the purposes of subsection 627.992(2) of the Act and in relation to each type of activity that is the subject of the payments or benefits, the total amount of the payments or benefits that the institution expects to receive from that insurer in that fiscal quarter and the three following fiscal quarters, expressed as a percentage of the total amount expected to be paid to the insurer by the institution in respect of policies and guarantees in that fiscal quarter and the three following fiscal quarters, is prescribed information.

Marginal note:Manner of disclosure

 The prescribed information referred to in sections 84 to 86 must be disclosed in a document that is separate from other documents provided to the person in relation to the agreement.

Marginal note:Amounts not included

 For greater certainty, the payments referred to in sections 76 to 78, 80 to 82 and 84 to 86 do not include any payment received by the institution in respect of a claim made by the institution under the insurance as a result of a default on the residential mortgage that is the subject of the insurance.

Public Notices

Notice of Branch Closure

Marginal note:Notice given by mail

 If a notice referred to in section 627.993 of the Act is sent by mail, it is deemed to have been given on the fifth business day after the postmark date.

Marginal note:Notice to Commissioner

 For the purposes of subsection 627.993(3) of the Act, the following information is prescribed information in relation to a notice referred to in paragraph 627.993(1)(a) of the Act:

  • (a) the location of the branch;

  • (b) the date proposed for the closure of the branch or the cessation of the activity;

  • (c) alternative sites where, after that date, customers of the branch may obtain services similar to the financial services that are provided at the branch or a telephone number that customers may call to be informed of those sites;

  • (d) the measures, if any, that the member bank is taking to maintain any financial services that are available in the area that is served by the branch, to the extent that information is available; and

  • (e) how the member bank may be contacted in respect of the proposed closure of the branch or cessation of the activity.

Marginal note:Other notices

 For the purposes of subsection 627.993(3) of the Act, the following information is prescribed information in relation to a notice referred to in paragraph 627.993(1)(b) or (c) of the Act:

  • (a) the information referred to in paragraphs 90(a) to (c) and (e) of these Regulations;

  • (b) how the Commissioner may be contacted in respect of the proposed closure of the branch or cessation of the activity;

  • (c) a statement that the Commissioner may require the member bank to convene and hold a meeting between representatives of the member bank, representatives of the Agency and interested parties in the vicinity of the branch, in order to exchange views about the proposed closure of the branch or cessation of the activity, if

    • (i) the member bank has not consulted the community in the area affected by the closure of the branch or the cessation of the activity well enough to ascertain the views of interested persons in the community with regard to the closure of the branch or the cessation of the activity,

    • (ii) an individual or a community representative from the area affected by the closure of the branch or the cessation of the activity submits to the Commissioner a written request for the meeting, and

    • (iii) the request is not frivolous or vexatious; and

  • (d) the address of the branch to which the member bank will transfer the customers’ accounts.

Marginal note:Non-application — section 627.993 of Act

 Section 627.993 of the Act does not apply in any of the following circumstances:

  • (a) the closure or cessation is temporary and is caused by events beyond the control of the member bank;

  • (b) the member bank does not expect the closure or cessation to continue for more than 15 business days;

  • (c) the closure or cessation results from the sale by the member bank of the branch’s assets and liabilities to another financial institution, that other financial institution proposes to operate a retail deposit-taking branch at the same site and the financial services that have been provided to the public from that site are not expected to be interrupted as a result of the sale for more than 15 business days;

  • (d) the closure or cessation results from a relocation of the branch or a consolidation of the branch with one or more branches into another branch and the travelling distance from the site of the relocated or consolidated branch to the site of the closed branch is less than 500 m;

  • (e) the closure or cessation is required in order to comply with

    • (i) a prudential agreement entered into between the member bank and the Superintendent under section 644.1 of the Act,

    • (ii) a direction of the Superintendent under subsection 645(1) of the Act, or

    • (iii) an order of a court under section 646 of the Act;

  • (f) the closure or cessation results from a decision of the Superintendent under subsection 649(2) of the Act after the Superintendent has taken control of the member bank under subparagraph 648(1)(b)(iii) of the Act;

  • (g) the closure or cessation results from actions directed towards the voluntary liquidation of the member bank

    • (i) after the Minister has approved an application under section 344 of the Act for letters patent dissolving the member bank, or

    • (ii) under the supervision of a court under an order made by the court under subsection 347(1) of the Act;

  • (h) the closure or cessation results from a winding-up order in respect of the member bank made under section 10 or 10.1 of the Winding-up and Restructuring Act;

  • (i) the closure or cessation results from the termination or cancellation of the policy of deposit insurance of the member bank under the Canada Deposit Insurance Corporation Act;

  • (j) the closure or cessation results from the making of an order under subsection 39.13(1) of the Canada Deposit Insurance Corporation Act in respect of the member bank;

  • (k) the closure or cessation is part of a restructuring transaction carried out under subsection 39.2(1) of the Canada Deposit Insurance Corporation Act; and

  • (l) the branch was acquired within the preceding year by a purchaser in a restructuring transaction carried out under subsection 39.2(1) of the Canada Deposit Insurance Corporation Act.

Marginal note:Exemptions

 For the purposes of section 627.994 of the Act, the following circumstances are the prescribed circumstances:

  • (a) the closure or cessation is in response to a risk to the safety of the branch personnel or the safety of the public;

  • (b) the closure or cessation is caused by the member bank’s right to use the premises as a retail deposit-taking branch being terminated by a person other than the member bank or an affiliate of the member bank and that person has not given the member bank enough notice of the termination to allow the member bank to comply with section 627.993 of the Act;

  • (c) the closure or cessation results from a relocation of the branch, and the travelling distance from the new location to the former location is more than 500 m but not great enough to substantially affect either the customers served by the branch or the nature of the business of the branch; and

  • (d) the giving of notice in the manner and time set out in section 627.993 of the Act would cause undue prejudice to the member bank.

Public Accountability Statements

Marginal note:Prescribed affiliates

 For the purposes of subparagraph 627.996(1)(a)(i) of the Act, the following affiliates of a bank are the prescribed affiliates:

  • (a) an affiliate that is a finance entity as defined in section 1 of the Finance Entity Regulations but is not a finance entity that makes or refinances loans to, or enters into any other similar arrangements for advancing funds or credit with, only entities that are its affiliates; and

  • (b) an affiliate that is a financial institution with equity of less than $1 billion but is not a foreign institution that carries on business exclusively outside of Canada.

Marginal note:Content of statement

  •  (1) For the purposes of subparagraph 627.996(1)(a)(i) of the Act and subject to sections 96 to 98 of these Regulations, the following information is prescribed information:

    • (a) a list of the bank’s prescribed affiliates;

    • (b) a list of the bank’s prescribed affiliates in respect of which a statement of another bank is filed under paragraph 627.996(1)(a) of the Act for the financial year and the name of the other bank;

    • (c) detailed examples, in relation to the bank and its prescribed affiliates, of

      • (i) their goals in the area of community development and of their participation during the financial year in activities for the purpose of community development, including the making of financial contributions for that purpose,

      • (ii) activities undertaken on their behalf during the financial year by their employees on a voluntary basis for the purpose of community development,

      • (iii) charitable donations that they made during the financial year,

      • (iv) their philanthropic activities, other than charitable donations, during the financial year, including their total value in money to the extent that the value of those activities can be expressed in money, and

      • (v) any new initiatives or technical assistance programs that they undertook during the financial year in relation to financing for small businesses and in relation to investments or partnerships in micro-credit programs;

    • (d) the total value in money of either

      • (i) the charitable donations made during the financial year by the bank and its prescribed affiliates, or

      • (ii) the charitable donations made during the financial year by the financial group of which the bank is a member;

    • (e) a report, in respect of the bank and its prescribed affiliates, setting out the total amount of money that they authorized to be made available during the financial year by way of debt financing to firms in Canada, and then setting out that amount broken down, by province, in accordance with the amount of debt financing that was authorized, and the number of firms to which it was authorized, within each of the following ranges:

      • (i) $0 to $24,999,

      • (ii) $25,000 to $99,999,

      • (iii) $100,000 to $249,999,

      • (iv) $250,000 to $499,999,

      • (v) $500,000 to $999,999,

      • (vi) $1,000,000 to $4,999,999, and

      • (vii) $5,000,000 and greater;

    • (f) a listing of the street addresses — including, if the address is shared, the precise location — of the facilities that were opened or closed by the bank in each province during the period, if those facilities are or were

      • (i) branches that are open to the public and at which a product or service is offered, or

      • (ii) facilities, other than branches, at which the bank has accepted deposits from customers or disbursed cash to customers;

    • (g) the number of individuals employed in each province at financial year-end by the bank and by its prescribed affiliates, including the number of full-time and part-time positions held by those individuals; and

    • (h) the total amount of income and capital taxes paid or payable by the financial group of which the bank is a member in respect of the financial year, broken down by total amounts paid or payable to federal and provincial governments.

  • Marginal note:Definition of community development

    (2) For the purposes of subparagraphs (1)(c)(i) and (ii), community development means the social, cultural, economic or environmental enrichment of a community.

Marginal note:Exception — new initiatives and technical assistance programs

  •  (1) The information referred to in subparagraph 95(1)(c)(v) of these Regulations is not prescribed information for the purposes of subparagraph 627.996(1)(a)(i) of the Act in respect of a prescribed affiliate that is an insurance company that did not undertake any new initiatives or technical assistance programs referred to in subparagraph 95(1)(c)(v) of these Regulations during the financial year.

  • Marginal note:Exception — debt financing

    (2) The information referred to in paragraph 95(1)(e) of these Regulations is not prescribed information for the purposes of subparagraph 627.996(1)(a)(i) of the Act in respect of a prescribed affiliate that is an insurance company that did not authorize money to be made available by way of debt financing to firms in Canada during the financial year.

Marginal note:Exception — identification of firm

 If a firm could be identified by breaking down the amount referred to in paragraph 95(1)(e) within the ranges referred to in subparagraphs 95(1)(e)(vi) and (vii), then the report referred to in paragraph 95(1)(e) is not required to include that information.

Marginal note:Exception — identification of firm by province

 If a firm could be identified by breaking down the amount referred to in paragraph 95(1)(e) within the ranges referred to in subparagraphs 95(1)(e)(i) to (v) for a province, then the report referred to in paragraph 95(1)(e) may set out that information with the information set out for another province provided that the report indicates that there is a change in the breakdown for the purposes of this section and identifies the provinces in question.

PART 3Consequential Amendments, Repeals and Coming into Force

Consequential Amendments

Public Accountability Statements (Banks, Insurance Companies, Trust and Loan Companies) Regulations

 [Amendments]

 [Amendments]

 [Amendments]

Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations

 [Amendments]

 [Amendments]

Principal Protected Notes Regulations

 [Amendments]

Credit Business Practices (Banks, Authorized Foreign Banks, Trust and Loan Companies, Retail Associations, Canadian Insurance Companies and Foreign Insurance Companies) Regulations

 [Amendments]

 [Amendments]

 [Amendments]

Mortgage Insurance Disclosure (Banks, Authorized Foreign Banks, Trust and Loan Companies, Retail Associations, Canadian Insurance Companies and Canadian Societies) Regulations

 [Amendments]

 [Amendments]

Deposit Type Instruments Regulations

 [Amendments]

 [Amendments]

Registered Products Regulations

 [Amendments]

 [Amendments]

 [Amendments]

Prescribed Products Regulations

 [Amendments]

Negative Option Billing Regulations

 [Amendments]

Access to Funds Regulations

 [Amendments]

Prepaid Payment Products Regulations

 [Amendments]

 [Amendments]

 [Amendments]

 [Amendments]

Repeals

 The following Regulations are repealed:

Coming into Force

Marginal note:Immediately before June 30, 2022

  •  Footnote *(1) Sections 99 to 122 come into force immediately before the coming into force of section 329 of the Budget Implementation Act, 2018, No. 2, chapter 27 of the Statutes of Canada 2018.

  • Marginal note:June 30, 2022

    (2) Sections 1 to 98 come into force on June 30, 2022.

SCHEDULE(Section 14)

Prescribed Debt Collection Practices

ItemDebt Collection Practice
1

An institution that communicates with a debtor in order to collect payment of a debt from the debtor must inform them of the following information:

  • (a) the details of the debt, such as the amount owed and the type of debt; and

  • (b) the identity of, or a unique identifier for, any person who is attempting to collect the payment on behalf of the institution and their relationship with the institution.

2
  • (1) Except for the sole purpose of obtaining a debtor’s address or telephone number, an institution may not contact or attempt to contact any member of the debtor’s family or household or any relative, neighbour, friend or acquaintance of the debtor unless

    • (a) that person has guaranteed to pay the debt and is being contacted in relation to that guarantee; or

    • (b) the debtor has given their express consent.

  • (2) If the consent referred to in paragraph (1)(b) is given orally by the debtor, the institution must provide confirmation of that consent to the debtor in writing, in paper or electronic form.

3Unless otherwise authorized in writing by the debtor, an institution may contact a debtor’s employer solely for the purpose of confirming that the debtor is employed, the nature of their employment and their business title and business address.
4

An institution may not contact a debtor at the debtor’s place of employment unless

  • (a) the institution does not have the home address or home telephone number of the debtor;

  • (b) attempts by the institution to contact the debtor at their home telephone number have failed; or

  • (c) the institution obtains written authorization from the debtor to do so.

5
  • (1) Except with the written consent of the debtor, an institution may not contact a debtor, any member of the debtor’s family or household, any relative, neighbour, friend or acquaintance of the debtor or the debtor’s employer or guarantor

    • (a) on a Sunday, except between the hours of 1:00 p.m. and 5:00 p.m. local time for the person being contacted;

    • (b) on any other holiday; or

    • (c) on any other day, except between the hours of 7:00 a.m. and 9:00 p.m. local time for the person being contacted.

  • (2) Except if the debtor or any other person referred to in subsection (1) has provided a cellular telephone number as a contact number, an institution may not knowingly communicate or attempt to communicate with the debtor or that person for the purpose of collecting, negotiating or demanding payment of a debt by a means that renders the charges or costs incurred for the communication payable by the debtor or that person, as the case may be.

6

An institution that has communicated with a debtor in respect of the collection of a debt may not communicate with the debtor again in the course of that collection

  • (a) by a means other than in writing, if the debtor makes a written request by registered mail to the institution to communicate with the debtor only in writing in that regard and provides an address at which they may be contacted;

  • (b) by a means other than through the debtor’s legal advisor, if the debtor makes a written request to the institution to communicate with the debtor in that regard only through the debtor’s legal advisor and provides a telephone number and an address for the legal advisor; or

  • (c) without the debtor’s consent, if the debtor notifies the institution by registered mail that the debt is in dispute and that they intend to take the matter before a dispute resolution body or that they are prepared for the institution to take the matter to court.

7An institution may not misrepresent the purpose of a communication in respect of the collection of a debt with any person or give, directly or indirectly, by implication or otherwise, any false or misleading information in the course of that communication.
8Despite any agreement to the contrary between a debtor and an institution, any charges made or incurred by the institution in collecting a debt, other than charges referred to in section 627.3 of the Act, are not considered to be a part of the amount owing by the debtor and may not be recovered from the debtor by the institution.
9An institution may not collect or attempt to collect payment in respect of a debt from any person who is not liable for the debt.
10An institution may not directly or indirectly threaten or state an intention to proceed with any legal action if it does not actually intend to do so.
11An institution may not, for the purpose of attempting to collect a debt, use any document that falsely purports to originate from any court within or outside Canada.
Date modified: