2013 QCCQ 3010, 2013 QCCQ 3010

Caisse populaire Desjardins de Lac Mistassini c. Blacksmith 2013 QCCQ 3010 JP1793 COURT OF QUEBEC «Civil division» CANADA PROVINCE OF QUEBEC DISTRICT OFABITIBI N°: 640-22-000193-133 DATE : March 21, 2013 ______________________________________________________________________ PRESENT : STÉPHANIE PAQUIN, CLERK ______________________________________________________________________ CAISSE POPULAIRE DESJARDINS DE LAC MISTASSINI PLAINTIFF c.

JEREMY JUSTUS BLACKSMITH ET LORETTA LOUISE LOON DEFENDANTS ______________________________________________________________________ JUDGEMENT ______________________________________________________________________ [ 1 ] The plaintiff claims from the defendants the sum of 6 874,24 $ in principal and the sum of 688,14 $ in interests accrued up to September 17, 2012 under the terms of a variable credit contract signed on September 15, 2009; [ 2 ] The plaintiff also claims from the defendants the sum of 5 400,61 $ in principal and the sum of 602,43 $ in interests accrued up to September 17, 2012 under the terms of an instalment sale contract signed on December 18, 2009. [ 3 ]

Section 9 of the variable credit contract and

section 7 of the instalment sale contract provides that the consumer agrees to pay, in case of default, additional credit charges reckoned in conformity with the Consumer Protection Act and the general regulation adopted under the act. [ 4 ] Sections 91 and 92 from the Consumer Protection Act relating to credit charges read as follow: 91. The credit charges must be computed according to the actuarial method prescribed by regulation. 92. Credit charges, whether imposed as a penalty, arrears charge, extension charge or otherwise must be computed in the manner provided in

section 91, except the components mentioned in subparagraphs a and b of the second paragraph of

section 72 in the case of a contract extending variable credit. [ 5 ]

Section 52 of the Regulation respecting the application of the Consumer Protection Act is also relevant and reads as follow: 52. The credit charges must be computed at the end of a payment period by multiplying the credit rate applicable under

section 83 of the Act by the balance of the capital outstanding at the commencement of that payment period and, where applicable, of the credit charges outstanding at the commencement of that period, and by multiplying the product thus obtained by the fraction represented by the payment period in relation to 365. However, a merchant may exact credit charges that are less than those computed in accordance with the first paragraph. [ 6 ] In the case Service financiers Avco Canada limitée c. Steve Pilote [1] the Honorable Louis Vézina, J.c.Q., wrote the following, at paragraph 28, relating to credit charges:

« En clair, les frais de crédit impayés (intérêts et accessoires) sont ajoutés au solde en capitale du début d’une période comme s’ils étaient du capital, mais uniquement pour le calcul des frais de crédit pour la période à venir . En ce sens, les frais de crédit impayés à terme portent intérêt au « taux de crédit » légalement convenu au contrat. »

My underlining. [ 7 ] In paragraphs 19 and 20, the Judge, decided: « La signification de l’avis de déchéance du terme, le 12 mai 1999, indiquait la volonté de la demanderesse de mettre fin au contrat de prêt 30 jours après telle signification, soit le 11 juin 1999, et de réclamer la totalité de sa créance calculée à cette date. [… ] À compter de cette dernière date, le solde du capital et les frais de crédit impayés constituent la créance de la demanderesse, laquelle porte intérêt au taux d’intérêt convenu au contrat P-1. » [ 8 ] Applying this

interpretation to the present case, in regard to the instalment sale contract, the notice of forfeiture of benefit of the term was served to the defendants on December 12, 2012. Thirty days later, the amount due to the plaintiff was 6 172,85 $ including the principal and the credit charges. [ 9 ] The evidence filed by the plaintiff proves her claims for the amounts of 7 562,38 $ and 6 172,85 $. [ 10 ] FOR THESE REASONS, THE CLERK: [ 11 ] GRANTS the motion; [ 12 ] CONDEMS the defendants to pay the plaintiff an amount of 7 562,38 $ bearing interest at the rate of 11,75% per year as of September 17, 2012 as well as the additional indemnity provided by

section 1619 of the Quebec civil code; [ 13 ] CONDEMS the defendants to pay the plaintiff an amount of 6 172,85 $ bearing interest at the rate of 10,25% per year as of January 11, 2013 as well as the additional indemnity provided by

section 1619 of the Quebec civil code; [ 14 ] THE WHOLE with costs againts the defendants. __________________________________ STEPHANIE PAQUIN, greffière Me René Martineau Martineau, Daoust, Boulianne, Pelletier Attorney for the plaintiff