Third Session, 46th

General Assembly

59 Elizabeth II,

BILL 13

AN ACT TO AMEND THE CONSUMER

PROTECTION

AND BUSINESS PRACTICES ACT

Received

and Read the First Time ...................................................................

Second

Reading ..............................................................................................

Committee ......................................................................................................

Third

Reading .................................................................................................

Royal

Assent ...................................................................................................

HONOURABLE KEVIN

O'BRIEN

Minister of

Government Services

Ordered to be printed by

the Honourable House of Assembly

EXPLANATORY NOTE

This Bill would amend a number of

provisions of the Consumer Protection and

Business Practices Act related to the cost of consumer credit

disclosure. The amendments would result

in greater alignment of provisions with those in similar legislation in other

Canadian jurisdictions.

A BILL

AN ACT TO AMEND THE CONSUMER PROTECTION AND BUSINESS PRACTICES ACT

Analysis

S.45 Amdt.

Interpretation

S.52 Amdt.

Payment of credit

S.55 Amdt.

Non-business credit grantors

S.56 Amdt.

Business credit grantors

S.69 Amdt.

Statements of account

S.110 Amdt.

Transitional

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

SNL2009 cC-31.1

(1) Paragraph 45(1 )(

d) of the Consumer Protection and Business

Practices Act is repealed and the following substituted:

(d) " assumed

residual payment" means

(

i) for an option lease

under which the option price at the end of the term is less than the estimated

residual value, that option price, and

(ii) in any case, the

estimated residual value plus an amount that the lessee will be required to pay

in the ordinary course of events at the end of the term;

(2) Paragraph 45(1 )(

l) of

the Act is repealed and the following substituted:

(l) " cash

value" , in relation to leased goods, means

(

i) where the lessor or an associate of the lessor sells like goods to

cash customers in the ordinary course of carrying on business,

(

A) a value that fairly

represents the price for which the lessor or associate of the lessor sells

those goods to cash customers, or

(

B) where the lessor and the lessee agree on a lower cash value, that

lower cash value, or

(ii) where the lessor or an associate of the lessor does not sell like

goods to cash customers in the ordinary course of carrying on business,

(

A) the lessor's

reasonable estimate of the price at which cash customers would buy those goods,

(

B) if the lessor and the

lessee agree on a lower cash value, that lower cash value;

(3) Paragraph 45(1 )(

y) of

the Act is repealed and the following substituted:

(y) "implicit finance charge" means the

sum of all non-refundable payments required to be made by the lessee at or

before the beginning of, or during, the term plus the assumed residual payment,

minus the total amount advanced to the lessee;

(4) Subsection 45(1) of the Act is amended by

adding immediately after paragraph (nn) the following:

(nn.1) "optional service" means a service

that is offered to a borrower in connection with a credit agreement and that

the borrower does not have to accept in order to enter into the credit agreement;

2. Subsection 52(3) of the Act is repealed and the

following substituted:

(3) Where a prepayment under subsection (2) is

made with respect to a credit agreement for fixed credit, the credit grantor

shall refund or credit to the borrower the portion of non-interest finance charges

paid by the borrower or added to the outstanding balance as prescribed by

regulation.

3. Subparagraph 55(b )( ii)

of the Act is repealed and the following substituted:

(ii) accounts for the

brokerage fee in the APR and the total

cost of credit where the credit is a fixed credit.

4. Subparagraph 56(1 )( a)(ii)

of the Act is repealed and the following substituted:

(ii) accounts for the

brokerage fee in the APR and the total

cost of credit where the credit is a fixed credit; and

5. Subsection 69(1) of the Act is amended by deleting

the words "a statement of account containing the" and substituting the

words "a statement of account containing as much of the following information

as applicable".

6. Paragraph 110(1 )(

a) of

the Act is repealed and the following substituted:

(

a) credit agreements for fixed credit and leases

that are entered into, renewed or amended on or after the date of coming into

force of the Part but does not apply to a fixed term lease whose term is

extended unless the lessor and lessee have signed an agreement to extend the term;

and

Earl G. Tucker, Queen's Printer