2012 QCCQ 13734, 2012 QCCQ 13734

Caisse populaire Desjardins de Lac Mistassini c. Hughboy 2012 QCCQ 13734 JP1793 COURT OF QUEBEC «Civil division» CANADA PROVINCE OF QUEBEC DISTRICT OF ABITIBI N°: 640-22-000177-128 DATE : November 19, 2012 ______________________________________________________________________ PRESENT : STÉPHANIE PAQUIN, CLERK ______________________________________________________________________ CAISSE POPULAIRE DESJARDINS DE LAC MISTASSINI PLAINTIFF c.

ANTHONY THOMAS HUGHBOY DEFENDANT ______________________________________________________________________ JUDGEMENT ______________________________________________________________________ [ 1 ] The plaintiff claims from the defendant the sum of 32 485,12 $ in principal and the sum of 2 865,46 $ in interests accumulated up to September 12, 2012 under the terms of a contract for the loan of money signed on August 25, 2011 ; [ 2 ]

Section 7 of the 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. [ 3 ] 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. [ 4 ]

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. [ 5 ] 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. [ 6 ] At paragraph 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. » [ 7 ] Applying this

interpretation to the present case, the notice of forfeiture of benefit of the term was notified to the defendant on June 11, 2012 . Thirty days later, the amount due to the plaintiff was 34 192,38 $ including the principal and the credit charges. [ 8 ] The evidence filed by the plaintiff proves her claims for the amount of 34 192,38 $. [ 9 ] FOR THESE REASONS, THE CLERK: [ 10 ] GRANTS the motion partially; [ 11 ] CONDEMS the defendant to pay the plaintiff an amount of 34 192,38 $ bearing interest at the rate of 12,5% per year as of July 12, 2012 as well as the additional indemnity provided by

section 1619 of the Quebec civil code; [ 12 ] THE WHOLE with costs againts the defendant. __________________________________ STEPHANIE PAQUIN, greffière Me René Martineau Martineau, Daoust, Boulianne, Pelletier Attorney for the plaintiff