These regulations (N.S. Reg. 160/2000) (just regulations regs cpregs.htm)

N.S. Reg. 160/2000

Nova Scotia — Regulations

This consolidation is unofficial and is for reference only.

For the official version of the regulations, consult the original documents on file with the Office of the Registrar of Regulations , or refer to the Royal Gazette

Part II .

Regulations are amended frequently.

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Consumer Protection Act Regulations

made under

Section 33 of the

Consumer Protection Act

R.S.N.S. 1989, c. 92

O.I.C. 2000-464 (effective September 20, 2000), N.S. Reg. 160/2000

as amended to O.I.C. 2024-358 (effective October 1, 2024), N.S. Reg. 203/2024

Please note: this table of contents is provided for convenience of reference and does not form part of the regulations.

Click here to go to the text of the regulations .

Citation

Agent of lender required to hold permit

Application

Bond

Suspension or cancellation of permit

Duties of agent

Cost of borrowing

Variable rate credit disclosure

Variable credit initial disclosure

Demand note disclosure

Change in rate statement requirements

Annual statement for variable rate loans

Bond forfeiture provisions

Advertising

Form A - Variable Rate Fixed Term Loan

Form B - Variable Rate Demand Loan (No Fixed Term)

Schedule of Costs of Borrowing

Form C - Fixed Rate Demand Loan (No Fixed Term)

Schedule of Costs of Borrowing

Form D - Business Permit Application

Citation

1 These regulations may be cited as the Consumer Protection Act Regulations .

Agent of lender required to hold permit

2 Every person who

(

a) carries on the business of providing services or goods to a borrower to assist

the borrower in obtaining an extension of credit from a lender; or

(

b) holds themself out to be a person as described in clause (a),

is deemed to be an agent of a lender for the purposes of the Act and these regulations and

is required to hold a valid permit under the Act.

Application

(1) A person may apply for a permit as a lender or an agent under the Act by submitting

to the Registrar

(

a) an application in Form D;

(

b) a fee of $133.35;

(

c) samples of the forms of any of the following documentation that the lender

proposes to use:

(

i) credit agreements,

(ii) credit application forms,

(iii) where variable credit is to be extended, the borrower’s periodic

statement,

(iv) where variable rate consumer loans are to be extended, the borrower's

annual statement,

(

v) the form to be provided to the borrower containing the information

required by

Section 12;

(

d) such other additional information that the Registrar considers appropriate in the

circumstances.

(2) The Registrar shall advise an applicant in writing of any defects in the forms

submitted pursuant to clause (1)(c), and the applicant may amend and resubmit the

forms.

(

a) use by the applicant of only those forms approved by the Registrar;

(

b) compliance by the applicant with other relevant legislation, including but not

limited to the Consumer Reporting Act ; and

(

c) if the applicant is a corporation, incorporation under the laws of the Province,

Canada or a province of Canada.

Bond

(1) The Registrar may require a lender or agent to deliver a surety bond in an amount of

$25 000.00 as a condition of a permit.

(2) A surety bond required by subsection (1) shall be a penal bond acquired through a

registered surety company approved by the Registrar.

(3) Where a bond delivered pursuant to this

Section is forfeited pursuant to

Section 21,

the amount due and owing as a debt to His Majesty by the person bound thereby

shall be determined as if His Majesty suffered such loss or damage as would entitle

His Majesty to the maximum amount of the liability prescribed by the bond.

Suspension or cancellation of permit

(1) Before the Registrar

(

a) refuses to issue a permit to an applicant;

(

b) cancels the permit of a lender or agent; or

(

c) suspends the permit of a lender or agent for a period of more than 12 days,

the Registrar shall fix a time and place for a hearing, and not less than 15 days

before the date so fixed for the hearing, the Registrar shall give the applicant, lender

or agent written notice of the hearing.

(2) A notice of hearing under subsection (1) shall set forth the time and place fixed for

the hearing and the particulars of the complaints or the alleged violations of the Act

or these regulations in sufficient detail to enable the applicant, lender or agent to

make a full answer, reply or defence.

(3) An applicant, lender or agent may be represented by counsel at the hearing, call

evidence on behalf of the applicant, lender or agent and cross examine under oath

any witness giving evidence against the applicant, lender or agent.

(4) The Registrar shall give a written copy of the decision to the applicant, lender or

agent within 30 days of the conclusion of the hearing.

(5) A notice of hearing under subsection (1) and a written decision of the Registrar

under subsection (4) shall be

(

a) given by registered mail addressed to

(

i) the applicant, lender or agent at the permanent place of business stated in

the applicant's application form or on the lender's or agent's permit, or

(ii) the recognized agent of the applicant, lender or agent within the

Province; or

(

b) delivered by personal service.

7 Upon receipt of the notification referred to in subsection 6(4), a lender or agent whose

permit has been suspended or cancelled shall immediately return the lender's or agent's

permit to the Registrar.

8 Despite the cancellation or suspension of a lender's or agent's permit, the lender or agent

may collect the lender's or agent's accounts receivable and for that purpose may extend the

time of payment, take and give up security and otherwise deal with borrowers and credit

transactions, the contracts for which were entered into before the cancellation or

suspension of the lender's or agent's permit, provided no new credit is extended to a

borrower.

Duties of agent

(1) No agent shall require or accept any payment or any security for a payment, directly

or indirectly, for whatever reason, from or on behalf of a borrower in respect of a

loan of money until the borrower has actually received the loan.

(2) Every arrangement by which an agent takes payment, consideration or a security in

contravention of subsection (1) is void.

10 Before providing services or goods to a borrower to assist the borrower in obtaining a loan

of money from a lender, an agent shall provide the borrower with a clear statement in

writing showing

(

a) the name, address, and telephone number of the agent;

(

b) the name and address of the borrower;

(

c) the names and addresses of the lenders from whom the agent will attempt to

obtain the loan on behalf of the borrower;

(

d) the amount of the loan;

(

e) the date by which the loan will be made to the borrower; and

(

f) the amount that the agent will charge the borrower for consulting, negotiating,

or arranging the loan expressed as a sum in dollars and cents and as a

percentage of the amount of the loan.

Cost of borrowing

11 For the purposes of clause 17(1)(

h) and subclause 17(3)(a)(

i) of the Act, a lender shall

disclose the percentage rate for each period during the term of credit that, when multiplied

by the principal amount of the credit outstanding at the end of the period, produces an

amount the total of which is equal to the cost of borrowing in relation to the cost expressed

as a rate per annum.

12 The annual percentage rate of interest calculated and disclosed by a lender to a borrower

shall be accurate to within one-eighth of one percent.

13 The cost of borrowing in respect of a period shall be calculated by multiplying the portion

of the annual percentage rate that the period is of 1 year by the principal amount that is

outstanding at the end of the period.

(1) Subject to subsection (2), where a prepayment is made, the cost of borrowing of the

amount of principal prepaid shall be calculated by multiplying the amount prepaid by

the number of days that have elapsed since the date of the last payment or the date of

the extension of credit, as the case may be, and the annual percentage rate and

dividing the figure obtained by 365.

(2) Any payment in respect of credit shall be applied first to pay the accumulated cost of

borrowing of the principal amount of the loan and thereafter to reduce the principal

amount of the loan.

(3) Where a prepayment is made, the prepayment shall be applied first to pay the

accumulated cost of borrowing of the principal amount of the credit extended and

thereafter to reduce the principal amount of the loan.

Variable rate credit disclosure

15 For the purposes of subsection 17(1) of the Act, where a lender and borrower agree that an

extension of credit is subject to variations in the annual percentage rate, the lender shall

disclose to the borrower,

(

a) pursuant to clause 17(1)(

h) of the Act, the percentage that the cost of

borrowing bears to the principal amount of the credit, based on the rate

prevailing on the transaction date;

(

b) pursuant to clause 17(1)(

g) of the Act, the cost of borrowing based on the rate

prevailing on the transaction date;

(

c) that the rate is subject to variation, the basis on which it shall vary and that this

variation will affect the cost of borrowing disclosed in the statement; and

(

d) on a separate statement, the information specified in Form A.

Variable credit initial disclosure

16 In addition to the requirements of subsection 17(3) of the Act, where a lender extends

variable credit to a borrower, the lender shall disclose to the borrower, before extending

the credit, a clear statement in writing setting forth

(

a) the term of each period for which a statement of account is furnished;

(

b) the amount in dollars and cents, of any service, transaction, or activity charge

and the manner in which it is calculated;

(

c) the manner, if any, in which the borrower may discharge their obligations

without incurring any cost of borrowing;

(

d) where a credit card is issued, the maximum liability of the borrower in the

event the card is lost or stolen; and

(

e) the manner in which the cost of borrowing is calculated.

Demand note disclosure

(1) Where a lender extends credit to a person in the circumstances to which subsection

17(6) of the Act applies and the lender and borrower agree that the extension of

credit is subject to variations in the annual percentage rate, the lender shall disclose

to the borrower in a separate statement the information specified in Form B.

(2) Where a lender extends credit to a person in the circumstances to which subsection

17(6) of the Act applies and the lender and borrower agree that the extension of

credit is subject to a fixed annual percentage rate, the lender shall disclose to the

borrower in a separate statement the information specified in Form C.

Change in rate statement requirements

18 The statement referred to in subsection 17(2) of the Act shall contain the following

information:

(

a) the revised rate;

(

b) the effective date of the revision; and

(

c) any modifications to the term or monthly payment resulting from the change in

rate.

19 [repealed]

Annual statement for variable rate loans

20 Where an extension of credit referred to in subsection 17(1) of the Act is subject to

variations in the annual percentage rate, the lender shall annually issue to the borrower a

written statement showing

(

a) the number of payments made during the year;

(

b) the total dollar amount of the payments made during the year;

(

c) the amount of principal repaid;

(

d) the amount applied to the cost of borrowing; and

(

e) the amount of principal outstanding.

Bond forfeiture provisions

21 A bond delivered pursuant to these regulations shall be forfeited upon the demand of the

Registrar where

(

a) the person in respect of whose conduct the bond is conditioned or any

representative, agent, officer, servant or employee of that person has been

convicted of

(

i) an offence under the Act or these regulations, or

(ii) an offence under the Criminal Code (Canada) involving fraud or theft or

conspiracy to commit an offence involving fraud or theft;

(

b) a judgment arising from a court proceeding in respect of a claim arising out of

a credit transaction has been given against the person in respect of whose

conduct the bond is conditioned or against any representative, agent, officer,

servant or employee of that person;

(

c) the person in respect of whose conduct the bond is conditioned commits

an act

of bankruptcy, whether or not proceedings have been taken under the

Bankruptcy Act (Canada); or

(

d) a decision has been rendered by the Registrar stating in effect that after

consideration and investigation of a complaint, the Registrar is satisfied that

the person in respect of whose conduct the bond is conditioned or any

representative, agent, officer, servant or employee of that person

(

i) has violated the Act or these regulations, or has failed to comply with

any of the terms, conditions or restrictions to which the person's permit is

subject, or is in breach of any contract to which the Act and these

regulations apply, or

(ii) has departed from Nova Scotia, or been out of Nova Scotia and remains

out of Nova Scotia, or in the case of a body corporate, that its name has

been stricken from the record of bodies corporate maintained by the

Registrar of Joint Stock Companies,

and the conviction, judgment, order or decision has become final by reason of

lapse of time or having been confirmed by the highest court to which any

appeal may be taken.

22 The Registrar may assign any bond forfeited under the Act or these regulations, or may

pay over any money recovered under it or recovered from the sale of any collateral

security, to

(

a) any person, or to the Public Trustee in trust for the person, who may become

entitled to it in respect of a credit transaction with the person named in the

bond;

(

b) any representative, agent, officer, servant or employee of the person entitled

pursuant to clause (a),

(

c) judgment creditors of the person bonded; or

(

d) any trustee, custodian, interim receiver or liquidator of the judgment creditors

referred to in clause (c),

and any assignment or payment made pursuant to this

Section shall be in accordance with

and upon conditions set forth by Order of the Governor in Council.

23 A bond may be terminated by any person bound by it by giving to the Registrar and the

principal named in the bond at least 2 months notice in writing of intention to terminate,

and the bond shall be deemed to be terminated on the date stated in the notice or 2 months

after receipt by the Registrar of the notice, whichever is the latest date.

24 For the purpose of every act or omission occurring

(

a) during the period in which a permit is in force; or

(

b) during the period prior to the termination of the bond pursuant to these

regulations,

every bond shall continue in force and any collateral security shall remain on deposit for a

period of 3 years following the cancellation of the permit or the termination of the bond, as

the case may be.

25 Where a bond has been forfeited and the Registrar has not received notice in writing of

any claim against the proceeds of the bond or such part as remains in the Registrar's hands

within 3 years of the forfeiture, the Registrar may pay the proceeds of the bond or the

collateral security, or any part remaining, to any person who made a payment under the

bond or who deposited the collateral security, after first deducting the amount of any

expenses incurred in connection with any investigation or otherwise relating to the lender

or agent in respect of whose conduct the bond was conditioned.

26 Where a bond in place pursuant to these regulations is terminated, the permit of the lender

or agent shall automatically be cancelled and shall remain cancelled until the lender or

agent delivers to the Registrar a new bond in the amount and form required by the

Registrar.

Advertising

27 A lender may disclose cost of borrowing information in addition to the information

required by the Act and regulations if the additional information is not stated, utilized or

placed so as to contradict, obscure or distract attention from the information required to be

disclosed.

28 In a representation referred to in subsection 20(1) of the Act, where the lender offers the

option of a reduced interest rate or cash rebate, the cash rebate forms part of the cost of

borrowing and, therefore, shall be reflected in the interest rate and disclosed in accordance

with

Section 17 of the Act.

29 In a representation made by a lender of the type referred to in subsection 20(1) of the Act,

(

a) where the annual percentage rate contained in a print advertisement will only

be available to the borrower for part of the anticipated term of the credit

agreement, the period of time that the advertised rate will be in effect shall be

included in the advertisement in print of a size that can be easily read; and

(

b) where the annual percentage rate contained in a radio or television

advertisement will only be available to the borrower for part of the anticipated

term of the credit agreement, the period of time that the advertised rate will be

in effect shall be given equal prominence in the script, in the case of radio,

with the rate referred to in the advertisement and, in the case of a television

advertisement, the information required by this

Section shall remain on the

screen for a period long enough to be easily read.

30 In a representation made by a lender of the type referred to in subsection 20(2) of the Act,

the lender shall also disclose the total amount to be repaid.

31 In a representation referred to in subsection 20(2) of the Act and

Section 30,

(

a) the relevant terms of the credit transaction disclosed in any television

advertising shall remain on the screen for a period of time sufficient to enable

the viewer to read the information in its entirety and in a size of print that can

easily be read; and

(

b) the relevant terms of the credit transaction disclosed in any print advertisement

shall be of a size that can be easily read.

Form A - Variable Rate Fixed Term Loan

Date

Customer's name

Account number

1. Present balance or amount borrowed

2. Additional funds

3. Official fees

4. Insurance (optional)

5. Principal amount of loan

(1 + 2 + 3 + 4) or

(1 + 3 + 4)

6. *Cost of borrowing

interest in dollars and cents

other fees

7. **Prevailing annual rate

8. Payment $

number of months

9. Total amount to be repaid

* The cost of borrowing, as stated here, is the difference between the amount to be repaid

and the principal amount and is based upon the assumption that the payments required to

be made by the borrower are made as they become due.

** The annual rate indicated above is the rate prevailing on the transaction date. The rate is

subject to change in accordance with the policy of the lender (as stated on the loan

document). Changes in the rate will result in changes in the cost of borrowing and amount

to be repaid.

Form B - Variable Rate Demand Loan (No Fixed Term)

Date

Customer's name

Account number

1. Present balance

2. Additional funds

3. Principal amount (1 + 2)

4 *Prevailing annual rate

5 **Cost of borrowing (see examples below)

Schedule of Costs of Borrowing

Principal amount Annual interest rate in dollars and cents

outstanding ($) over a 12-month period at various rates

***

15%16%17%

1000 180.00 192.00 204.00

2000 360.00 384.00 408.00

3000 540.00 576.00 612.00

4000 720.00 768.00 816.00

5000 900.00 960.00 1020.00

* The annual rate indicated above is the rate prevailing on the transaction date. The rate is

subject to change in accordance with the policy of the lender (as stated on the loan

document).

Whereas no specific payment amount or time for repayment is specified at the time this

loan is extended, the cost of borrowing shown above has been disclosed in dollars and

cents for 1 year (for purpose of example only) at various rates.

*** The rate of interest in the centre column represents the rate prevailing on the transaction

date.

Form C - Fixed Rate Demand Loan (No Fixed Term)

Date

Customer's name

Account number

1. Present balance

2. Additional funds

3. Principal amount (1 + 2)

4. Annual rate

5. *Cost of borrowing (see examples below)

Schedule of Costs of Borrowing

Principal amount Cost of borrowing in dollars and

outstanding ($) cents over a 12-month period

Whereas no specific time for repayment and/or repayment amount is specified at the time

this loan is extended, the cost of borrowing shown has been disclosed in dollars and cents

for 1 year on various loan amounts, based on the annual rate of this credit transaction.

Form D - Business Permit Application

Business name:

(operating name )

Revenue Canada BN # : N.S. Registry of Joint Stock Companies # :

Civic address (not P.O. box) :

Street # Street name Unit/Suite/Apt #

City/Town/County Province Country

Postal code

Business mailing address (if different) :

Street, P.O. Box, RR #, Site #, etc.

City/Town/County Province Country

Postal code

Contact information :

Primary phone # Fax #

Please check the appropriate item(

s) Type of Permit

Governing Legislation

□ Lender Permit

□ Agent of Lender Permit

Consumer Protection Act

For the following 7 questions, please respond for either the individual applicant or each partner (in the case of a

partnership applicant), or each officer/director (in the case of a Corporation applicant). Please use the

addendum if additional space is required.

1. Name and address of institution housing the applicant's trust account ( if applicable)

2. Has the applicant been involved in a personal or corporate bankruptcy?

No Yes