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SNL2009

CHAPTER C-31.1

CONSUMER PROTECTION AND

BUSINESS PRACTICES ACT

Amended:

2010 c11; 2010 c26; 2010 c31 s5; 2010 c33; 2012 c7; 2012 c23;

2013 c16 s25; 2016 c46; 2022 c28

CHAPTER C-31.1

AN ACT RESPECTING CONSUMER PROTECTION AND

BUSINESS PRACTICES

(Assented to May 28, 2009

Analysis

Short title

PART I

DEFINITIONS AND APPLICATION

Definitions

Waiver

PART II

ADMINISTRATION

Director and assistant director

Powers and duties of director

Fees and forms

PART III

UNFAIR PRACTICES

Division 1

Consumer Practices

Unfair consumer practices

Unconscionable acts

Prohibition

Remedies of consumers

Division 2

Relief from Unconscionable Transactions

Definitions

Court may reopen transaction

Exercise of powers of court

Burden of proof

Factors to be considered by court

Relief in Trial Division

Saving genuine holder for value and existing jurisdiction

PART IV

UNSOLICITED GOODS AND SERVICES AND CREDIT CARDS

Definitions

Unsolicited goods or services

Material change considered unsolicited

Consumer's remedy

Credit arrangements

PART V

CONSUMER CONTRACTS

Division 1

Direct Sales Contracts

Definition

Content of contract

Cancellation rights

Cancellation of contract

Restriction on enforcement of contract

Division 2

Distance Sales Contracts

Definition

Disclosure of information

Distance sales contract in electronic form

Copy of distance sales contract

Cancellation of distance sales contract

Refunds by supplier on cancellation

Return of goods by consumer on cancellation

Consumer's recourse regarding credit card charges

Division 3

Distance Service Contracts

Rep. by 2022 c28 s12

35.1

Rep. by 2022 c28 s12

35.2

Rep. by 2022 c28 s12

35.3

Rep. by 2022 c28 s12

35.4

Rep. by 2022 c28 s12

35.5

Rep. by 2022 c28 s12

35.6

Rep. by 2022 c28 s12

35.7

Rep. by 2022 c28 s12

35.8

Rep. by 2022 c28 s12

35.9

Rep. by 2022 c28 s12

35.10

Rep. by 2022 c28 s12

35.11

Rep. by 2022 c28 s12

35.12

Rep. by 2022 c28 s12

35.13

Rep. by 2022 c28 s12

35.14

Rep. by 2022 c28 s12

35.15

Rep. by 2022 c28 s12

35.16

Rep. by 2022 c28 s12

PART VI

CREDIT REPORTS

Definitions

Application of

Part

Disclosure of consumer report

Contents of consumer report

Credit report

Personal information

Disclosure of file to consumer

Alteration of consumer information

Sale of files

PART VII

COST OF CONSUMER CREDIT DISCLOSURE

Interpretation

Division 1

Application

Application

Delivery of disclosure statements

Disclosure

Delivery

Division 2

Rights and Obligations

Insurer

Cancellation of optional services

Prepayment of credit

Default charges

Invitation to defer payment and acceleration clause

Non-business credit grantors

Business credit grantors

Division 3

Fixed Credit

Application

Advertising

Advertising interest-free periods

Disclosure statements

Interest change disclosure

Increases in outstanding principal

Amendments

Mortgage renewal disclosure

Division 4

Open Credit

Application

Advertising

Interest free periods

Open credit disclosure

Statements of account

Transaction description

Credit card by application

Application for credit card

Additional credit card disclosure

Limitation of liability

Division 5

Leases of Goods

Application

Advertising requirements

Disclosure

Maximum liability for residual obligation lease

Division 6

Compliance

Interpretation

Recovery of overpayments and compensation

Remedies

Assignee

Division 7

Regulations

Regulations

PART VII.1

PAYDAY LOANS

83.1

Definitions

83.2

Application

83.3

Limits on total cost of borrowing

83.4

Prohibited practices

83.5

Cooling off period

83.6

Agreement and advance

83.7

Receipt for payment

83.8

Payout of balance on cash card

83.9

Prepayment

83.10

Consequence of failure to comply

83.11

Regulations

PART VII.2

HIGH-COST CREDIT PRODUCTS

83.12

Definitions

83.13

Application

83.14

Limits on total cost of borrowing

83.15

Prohibited practices

83.16

Cancellation rights

83.17

Required terms of agreement

83.18

Receipt for payment

83.19

Payout of balance on cash card

83.20

Prepayment

83.21

Signs and advertisements

83.22

Consequences of failure to comply

83.23

Regulations

PART VIII

LICENCES

Definitions

Licence required

Denial of licence

Suspension and cancellation of a licence

Production of licence

Certificate of registrar

Address for service

Notice of change

Annual return

Registration continues

Exception to licensing requirement

Bonds

PART IX

INVESTIGATION AND ENFORCEMENT

Investigations

Proof of documents

Freezing orders

Receiving order

Compliance

Compliance orders

Director's actions

Actions on behalf of consumer

Interim injunction

PART X

REGULATIONS

Regulations

PART XI

APPEALS

Appeals

Evidence

PART XII

OFFENCE

Offences

PART XIII

CONSEQUENTIAL AMENDMENTS, REPEAL AND COMMENCEMENT

Transitional

RSNL1990 cM-18 and CNLR 1006/96

Amdt.

Acts Repealed

Commencement

Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows:

Short title

This Act may be cited as the Consumer Protection and Business Practices Act.

2009 cC-31.1 s1

PART I

DEFINITIONS AND

APPLICATION

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Definitions

In this Act

(a)

"consumer" means a natural person acting for personal, family or household purposes but does not include a person who is acting for business purposes;

(b)

"consumer transaction" means

an act or instance of conducting business or other dealings with a consumer including an agreement between a supplier and a consumer in which the supplier agrees to supply goods and services for payment;

(c)

"credit" means the advancing of money, goods or services to or on behalf of another for repayment at a later time, whether or not there is a cost of borrowing, and includes variable credit;

(d)

"director" means the Director of Consumer Protection and Business Practices appointed under

section 4

(e)

"goods" means personal property or a right or interest in personal property that is used or ordinarily used primarily for personal, family or household purposes including personal property that becomes fixtures subsequent to a consumer transaction but does not include securities as defined in the Securities Act ;

(f)

"judge" means a judge of the Supreme Court;

(g)

"licence" means a licence issued or renewed under this Act;

(h)

"minister" means the minister appointed under the Executive Council Act

to administer this Act;

(h.1)

"payday loan" has the meaning given to it in

section 83.1;

( i

"services" means services provided to a consumer for primarily personal, family or household purposes including

( i

for the maintenance or repair of goods or real property owned by a consumer,

(ii)

in conjunction with the use of social, recreational

or physical fitness facilities,

(iii)

in conjunction with the use of cell phones, residential phones, internet, cable and satellite television and remote surveillance,

(iv)

in respect of the movement, transport or storing of goods, or

(

v) for educational purposes; and

(j)

"supplier" means a person who, as a principal or agent, in the course of

the persons business

( i

offers or advertises the sale of goods or services to a consumer,

(ii)

engages in a consumer transaction with a consumer, or

(iii)

manufactures, imports, produces

or assembles goods,

and includes an assignee of the rights and obligations of a supplier.

2009 cC-31.1 s2 ; 2010 c26 s1 ; 2012 c7 s1 ; 2016 c46 s1 ; 2022 c28 s1

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Waiver

(1)A waiver or release by a person of the person's rights, benefits or protection under this Act or regulations is void.

(2) Subsection (1) does not apply to a release made by a person to settle a dispute.

2009 cC-31.1 s3

PART II

ADMINISTRATION

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Director and assistant director

(1)The minister shall appoint a Director of Consumer Protection and Business Practices.

(2) The minister may appoint an Assistant Director of Consumer Protection and Business Practices who, in the absence or incapacity of the director, shall perform the functions and exercise the powers of the director.

2009 cC-31.1 s4

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Powers and duties of director

(1)The powers and duties of the director are

(

a) to exercise the powers and perform the duties conferred or imposed on the director under this Act;

(

b) to receive and act on complaints respecting consumer transactions;

(

c) to make inquiries, gather information and attempt to mediate or resolve complaints between a consumer and a supplier;

(

d) to publish reports respecting the enforcement and administration of this Act; and

(

e) to inform consumers and suppliers of this Act.

(2) The director, in the performance of the directors duties and responsibilities under this Act has the powers of a commissioner under the Public Inquiries Act, 2006

2009 cC-31.1 s5 ; 2022 c28 s2

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Fees and forms

The minister may approve forms and set fees for the purpose of this Act.

2009 cC-31.1 s6

PART III

UNFAIR PRACTICES

Division 1

Consumer Practices

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Unfair consumer practices

(1)In this Part, an unfair business practice is a representation, conduct or failure to disclose material facts that has the effect, or might reasonably have the effect, of deceiving or misleading a consumer, and includes

(

a) a representation that the goods or services have sponsorship, approval, performance characteristics, accessories, ingredients, quantities, components, uses or benefits that they do not have;

(

b) a representation that the supplier has sponsorship, approval, status, affiliation or connection that the supplier does not have;

(

c) a representation that the goods or services are of a particular standard, quality or grade where they are not;

(

d) a representation that the goods are of a particular style, model or origin where they are not;

(

e) a representation that the goods have been used to an extent that is different from their actual use;

(

f) a representation that the goods are new or unused where they are not or where they are reconditioned, reclaimed, altered or deteriorated;

(

g) a representation that the goods have a particular prior history or use where they have not;

(

h) a representation that the goods or services have been made available in accordance with a previous representation where they have not;

(

i) a representation that the goods or services are available, or are available at a reduced price, for a reason that is different from the fact;

(

j) a representation that the goods or services have been supplied in accordance with a previous representation, where they have not;

(

k) a representation that the goods or services are available when the supplier knows or ought to know that they are not or has no intention of supplying them;

(

l) a representation that a specific price advantage exists where it does not;

(

m) a representation that a part, replacement, repair or adjustment is needed where it is not;

(

n) a representation that repairs have been made or parts installed where that is not the case;

(

o) a representation that the supplier is soliciting or communicating with consumers with a certain interest or purpose where the supplier is not;

(

p) a representation that a consumer transaction involves or does not involve rights, remedies or obligations where that representation is deceptive or misleading;

(

q) a representation such that a consumer might reasonably conclude that the goods are available in greater quantities than are in fact available from the supplier;

(

r) a representation as to the authority of a salesperson, representative, employee or agent to negotiate the final terms of a consumer transaction where the representation is not accurate;

(

s) the giving of an estimate or evaluation of the price of goods or services that is materially less than the price subsequently determined or demanded, where the supplier has proceeded with the performance of the consumer transaction without the express prior consent of the consumer;

(

t) the giving of less prominence in an advertisement or display to the total price of goods or services than to the price of a part of the goods or services;

(

u) the giving of less prominence in a representation, advertisement or display to the amount of an instalment to be paid for goods or services than to the total price of the goods or services;

(

v) a representation that goods or services are free when that is not the case; and

(

w) a representation using exaggeration, innuendo

or ambiguity as to a material fact.

(2) An unfair business practice may occur before, during or after a consumer transaction notwithstanding that the consumer transaction is not completed or a consumer has not suffered loss or damage.

(3) With the exception of paragraphs (1)(

t) and (u), subsection (1) does not apply to a supplier who, on behalf of another supplier, broadcasts by radio or television, or prints, publishes

or distributes an advertisement that the supplier has accepted in good faith.

2009 cC-31.1 s7 ; 2022 c28 s3

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Unconscionable acts

(1)In determining whether

an act or practice is unconscionable the court shall consider the circumstances that the supplier knew or ought to have known, including

(

a) that at the time the consumer transaction was entered into there was no reasonable probability of full payment of the purchase price by the consumer;

(

b) that the consumer was unable to receive a substantial benefit from the consumer transaction;

(

c) that at the time the consumer transaction was entered into the price grossly exceeded the price at which similar goods or services were available to similar consumers;

(d)

(

e) that the supplier used trickery or undue pressure in order to

induce the consumer to enter into the consumer transaction; or

(

f) that the supplier took advantage of the extreme necessity or helplessness of the consumer or the inability of the consumer to protect the consumer's interests because of the consumer's physical or mental disability, ignorance, illiteracy, age or emotional state, or the inability to understand the character, nature

or language of the consumer transaction.

(2) An unconscionable act or practice may occur before, during or after a consumer transaction.

2009 cC-31.1 s8 ; 2022 c28 s4

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Prohibition

(1)A person shall not engage in an unfair business practice or unconscionable act or practice.

(2) Where it is alleged that a supplier is engaging in or has engaged in an unfair business practice or an unconscionable act or practice, the burden of proof that the supplier is not engaging in or has not engaged in an unfair business practice or an unconscionable act or practice rests with the supplier.

2009 cC-31.1 s9

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Remedies of consumers

(1)Where a consumer has suffered damage as a result of

an unfair business practice or unconscionable act or practice, the consumer may start an action against a supplier.

(2) In an action started under this section, or in another action concerning a supplier where it appears to the court that an unfair business practice or unconscionable act or practice has occurred, the court may

(

a) make an order declaring the act or practice to be an unfair business practice or unconscionable act or practice;

(

b) award damages for a loss suffered including exemplary or punitive damages;

(

c) make an order rescinding the transaction;

(

d) grant an interim or permanent injunction restraining the supplier from continuing the unfair business practice or unconscionable act or practice;

(

e) reopen the transaction and repay the amount paid to the supplier by the consumer or relieve the consumer from the payment of an amount in excess of

the amount judged by the court to be a fair price for the transaction; and

(

f) make other directions and grant other relief that the court considers appropriate.

(3) Where a consumer begins an action under this section, the consumer shall serve the director with a copy of the statement of claim and upon the request of the director to the court the director shall be added as a party to the action.

(4) Nothing in this

section limits a remedy a consumer may have with respect to a transaction under the common law or another Part.

2009 cC-31.1 s10 ; 2010 c26 s2 ; 2022 c28 s5

Division 2

Relief from Unconscionable Transactions

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Definitions

In this Division

(a)

"cost of the loan" means the whole cost to the debtor of money lent and includes interest, discount, subscription, premium, dues, bonus, commission, brokerage fees and charges, but not actual lawful and necessary disbursements made to the Registrar of Deeds, the Supreme Court, the sheriff or a city or a town clerk of a municipality;

(b)

"creditor" includes the person advancing money lent and the assignee of a claim arising

or security given in respect of money lent;

(c)

"debtor" means a person to whom or on whose behalf money lent is advanced, and includes a surety and endorser or other person liable for the repayment of money lent or upon an agreement or collateral or other security given in respect of it; and

(d)

"money lent" includes money advanced on behalf of a person in a transaction which, whatever its form may be, is substantially one of money-lending

or securing the repayment of money so advanced and includes a mortgage.

2009 cC-31.1 s11 ; 2013 c16 s25

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Court may reopen transaction

Where, in respect of money lent, a judge finds that having regard to the risk and to the circumstances, the cost of the loan is excessive

and that the transaction is harsh and unconscionable the judge may

(

a) reopen the transaction and take an account between the creditor and the debtor;

(

b) notwithstanding a statement or settlement of account or an agreement purporting to close previous dealings and create a new obligation, reopen an account already taken and relieve the debtor from payment of a sum in excess of the sum determined by the judge to be fairly due in respect of the principal and the cost of the loan;

(

c) order the creditor to repay the excess where it has been paid or allowed on account by the debtor; and

(

d) set aside either wholly or in part or revise or alter a security given or agreement made in respect of the money lent, and, where the creditor has parted with the security, order the creditor to indemnify the debtor.

2009 cC-31.1 s12

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Exercise of powers of court

The powers conferred by

section 12

may be exercised in an action or proceeding

(

a) by a creditor for the recovery of money lent;

(

b) by the debtor notwithstanding a provision or agreement to the contrary and notwithstanding that the time for repayment of the loan or an instalment of it has not arrived; or

(

c) in which the amount due or to become due in respect of money lent is in question.

2009 cC-31.1 s13

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Burden of proof

In an action taken under this Division the burden of proof is on the creditor to establish that having regard to the risk and to the circumstances the cost of the loan is not excessive and is not harsh and unconscionable.

2009 cC-31.1 s14

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Factors to be considered by court

(1)In determining whether the cost of a loan is excessive a judge shall consider

(

a) the interest rates prevailing at the time the loan was entered into for loans of a similar nature, including the prime rate of interest charged by the chartered banks to their most credit-worthy customers;

(

b) the degree of risk assumed by the creditor; and

(

c) the cost of a similar loan to a debtor in similar circumstances.

(2) In determining whether the transaction is harsh and unconscionable a judge shall consider

(

a) whether the debtor was unable to protect the debtors own interests because of physical or mental disability, age, illiteracy, ignorance or inability to understand the nature of the lending transaction;

(

b) whether the debtor was subject to undue pressure to enter into

the lending transaction; or

(

c) whether, at the time the loan was entered into

, there was no reasonable probability of full payment of the principal amount of the loan and the cost of the loan.

2009 cC-31.1 s15 ; 2022 c28 s6

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Relief in Supreme Court

In addition to a right that a debtor may have under this or another Division or otherwise in respect of money lent, the debtor may apply for relief under this Division to a judge and the judge on the application may exercise the powers of the court under

section

2009 cC-31.1 s16 ; 2022 c28 s7

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Saving genuine holder for value and existing jurisdiction

Nothing in this Division affects the rights of a genuine assignee or holder for value without notice or derogates from the existing powers or jurisdiction of a judge.

2009 cC-31.1 s17

PART IV

UNSOLICITED GOODS AND

SERVICES AND

CREDIT CARDS

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Definitions

In this Part, "unsolicited goods" means personal property provided to a person who did not request it, but does not include

(

a) personal property that the recipient knows or ought to know is intended for another person, or

(

b) personal property supplied under a written contract to which the recipient is a party that provides for the periodic supply of personal property to the recipient without further solicitation,

and a request for goods shall not be inferred from inaction or the passing of time alone.

2009 cC-31.1 s18

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Unsolicited goods or services

(1)A consumer does not have a legal obligation in respect of unsolicited goods or services unless and until the consumer expressly acknowledges to the supplier in writing the consumers intention to accept the goods or services.

(2) Unless the consumer has given the acknowledgment referred to in subsection (1), the supplier does not have a cause of action for a loss, use, misuse, possession, damage

or misappropriation in respect of the goods or services or the value obtained by the use of the goods or services.

(3) Where it is alleged that the supplier supplied unsolicited goods or services, the burden of proof that the goods or services were not unsolicited is on the supplier.

2009 cC-31.1 s19 ; 2022 c28 s8

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Material change considered

unsolicited

(1)Where a consumer is receiving goods or services on an ongoing or periodic basis and there is a material change in the goods or services, the goods or services shall be considered to be

unsolicited from the time of the material change forward unless the supplier is able to establish that the consumer consented to the material change.

(2) A supplier may rely on a consumer's consent to a material change that is made orally, in writing or by other affirmative action but the supplier shall bear the onus of proving the consumer's consent.

2009 cC-31.1 s20

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Consumer's remedy

(1)A consumer who pays for unsolicited goods or services may give to the supplier a demand, in writing, for a refund from the supplier within 60 days after the consumer first received the goods or services where the consumer did not expressly acknowledge to the supplier in writing the consumers intention to accept the goods or services.

(2) A demand is sufficient if it indicates, in any way, the intention of the consumer to demand a refund of a payment made for unsolicited goods or services.

(3) Where a supplier receives a demand for a refund, the supplier shall refund to the consumer, within 15 days after the supplier received the demand, all money received in respect of the unsolicited goods or services.

2009 cC-31.1 s21 ; 2022 c28 s9

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Credit arrangements

(1)An action shall not be brought against a person upon an arrangement for the extension of credit evidenced by a credit card unless the person to whom credit is extended requested or accepted the credit arrangement and card in writing.

(2) The use of a credit card by a person whose name appears on the credit card shall be considered to constitute written acceptance by the person of the card and the terms of credit.

2009 cC-31.1 s22

PART V

CONSUMER CONTRACTS

Division 1

Direct Sales Contracts

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Definition

In this Division, Division 3,

Part VIII and

Part X, "direct sales contract" means an agreement between a consumer and a supplier that is negotiated or concluded in person at a place other than

(

a) the supplier's place of business; or

(

b) a market place

, an auction, trade fair, agricultural fair or exhibition.

2012 c7 s2

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Content of contract

(1)A written contract shall include

(

a) the consumer's name and address;

(

b) the supplier's name, business address, telephone number and, where applicable, fax number;

(

c) where applicable, the salesperson's name;

(

d) the date and place of the contract;

(

e) a description of the goods and services, sufficient to identify them;

(

f) a statement of cancellation rights that conforms with the requirements of the regulations;

(

g) itemized prices of the goods or services, or both;

(

h) the total amount of the contract;

(

i) the terms of payment;

(

j) in the case of a contract for the future delivery of goods, future provision of services or goods together with services, the delivery date for the goods or start date for the services or both;

(

k) in the case of a contract for the future provision of services or goods together with services, the completion date for supplying the services or the goods together with services;

(

l) subject to subsection (2), where credit is extended,

(

i) a statement of any security taken for payment, and

(ii)

the cost of credit in accordance with

Part VII

(

m) where goods are taken in trade, a description of and the value of the trade-in; and

(

n) the signatures of both parties.

(2) Where credit is extended or arranged by the supplier and the credit contract is separate from or attached to the direct sales contract, the credit contract is conditional on the direct sales contract and, where the direct sales contract is cancelled, that cancellation has the effect of cancelling the credit contract.

(3) Upon entering into

a direct sales contract with a purchaser,

(

a) a supplier shall furnish the suppliers address; and

(

b) a salesperson of a supplier shall furnish the supplier's and the salespersons own address

in writing to that purchaser.

(4) A provision in a written direct sales contract to the effect that that contract contains the entire agreement entered into

between the parties shall not prevail over oral representations made by the salesperson or supplier with the intent or effect of inducing the purchaser to enter into the contract.

(5) A supplier or salesperson shall, immediately upon receiving a payment under a direct sales contract, deliver to the purchaser a written receipt.

2009 cC-31.1 s24 ; 2022 c28 s10

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Cancellation rights

A statement of cancellation rights shall comply with the requirements of the regulations.

2009 cC-31.1 s25

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Cancellation of contract

(1)A direct sales contract may be cancelled

(

a) within 10 days after a copy of the contract is received;

(

b) within one year from the date of entering the contract where

(

i) the supplier does not comply with legislative or regulatory requirements regarding licensing or registration, including financial security requirements or conditions on the suppliers licence or registration at the time the contract was made, within 30 days of the date stated in the contract, or where the goods or services have not been received, unless delivery has been accepted after the 30 days have passed,

(ii)

the supplier does not meet the requirements for the content of the contract as specified in subsection 24

(1), or

(iii)

within 30 days of the supply date specified in the contract, or the amended supply date agreed upon, the service has not started

or the goods and services have not been received and delivery has not been accepted, after the 30 days have lapsed.

(2) Where a direct sales contract is cancelled, the supplier shall, within 15 days of the cancellation, refund to the consumer all money and return to the consumer any trade-in or an amount equal to the value of the trade-in received under the contract.

(3) In the case of a contract respecting goods, the consumer shall, upon receiving the refund and return of the trade-in, or an amount equal to the value of the trade-in, return the goods to the supplier.

(4) Cancellation of a contract shall be by notice and a notice of cancellation is adequate if, however expressed, it indicates the intention of the consumer to cancel the contract.

(5) Where a consumer cancels a direct sales contract, the consumer shall send or deliver the cancellation notice to the supplier using a method where the consumer can provide evidence the consumer cancelled the contract and the date on which this occurred, including registered mail, fax

or personal delivery.

(6) Where a method of sending or delivering the cancellation notice other than personal delivery is used, the cancellation is considered to be

given when sent.

(7) A breach of an administrative requirement that does not affect a consumer's interests shall not result in extended cancellation rights.

(8) These provisions do not affect another remedy or right the consumer may have at law.

2009 cC-31.1 s26 ; 2022 c28 s11

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Restriction on enforcement of contract

An action shall not be brought by a supplier against a purchaser for the enforcement of a direct sales contract unless the supplier was licensed, under this Act, at the time that the purchaser entered into

the contract.

2009 cC-31.1 s27

Division 2

Distance Sales Contracts

2012 c7 s3

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Definition

In this Division and Division 3, "distance sales contract" means a contract for the supply of goods or services between a supplier and a consumer that is not entered into in person and, with respect to goods, for which the consumer does not have the opportunity to inspect the goods that are the subject of the contract before the contract is entered into, but does not include a prepaid purchase card.

2012 c7 s4

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Disclosure of information

(1)A supplier shall disclose the following information to a consumer before the consumer enters into

a distance sales contract:

(

a) the information referred to in

section 24

(

b) if available, the supplier's electronic mail address;

(

c) a detailed description of the goods or services to be supplied under the contract, including relevant technical or system specifications;

(

d) the currency in which amounts owing under the contract are payable;

(

e) the supplier's delivery arrangements, including the identity of the shipper, the mode of transportation and the place of delivery to the consumer;

(

f) the supplier's cancellation, return, exchange

and refund policies; and

(

g) other prescribed information.

(2) The supplier shall disclose the information required under subsection (1) in a clear and comprehensible manner.

2009 cC-31.1 s29

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Distance sales contract in electronic form

(1)In this section, "electronic" has the same meaning as in the Electronic Commerce Act

(2) Before a consumer enters into

a distance sales contract that is in electronic form, a supplier shall

(

a) make the information required under

section 29

available in a manner that

(

i) requires the consumer to access the information, and

(ii)

allows the consumer to retain and print the information; and

(

b) provide a consumer with an express opportunity

(

i) to correct errors in the contract, and

(ii)

to accept or decline the contract.

2009 cC-31.1 s30

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Copy of distance sales contract

(1)A supplier shall give a consumer who enters into

a distance sales contract a copy of the contract within 15 days after the contract is entered into.

(2) The copy of the distance sales contract given under subsection (1) shall contain

(

a) the information described in

section 29

(

b) the consumer's name, and

(

c) the date the contract was entered into.

(3) A supplier may give a copy of a distance sales contract to a consumer

(

a) by sending the copy by electronic mail to the electronic mail address provided by the consumer to the supplier for the provision of information related to the contract, or

(

b) by giving the copy by another manner that enables the supplier to prove that the consumer has received and retained the copy.

(4) A copy of the distance sales contract given in accordance with paragraph (3)(

a) is considered to be

received on the third day after it is sent.

2009 cC-31.1 s31

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Cancellation of distance sales contract

(1)A consumer may cancel a distance sales contract by giving notice of cancellation to the supplier

(

a) not later than 10 days after the date that the consumer receives a copy of the contract where

(

i) the supplier does not comply with

section 30

, or

(ii)

the contract does not comply with

section 31

(

b) not later than 30 days after the date that the contract is entered into where the supplier does not provide the consumer with a copy of the contract in accordance with subsection 31

(1),

(

c) before the goods or services are delivered where the goods or services to be delivered under the contract are not delivered to the consumer within 30 days of the supply date, or

(

d) before the goods or services are delivered where the supply date is not specified in the contract and the supplier does not deliver the goods or services within 30 days from the date the contract is entered into.

(2) Where a distance sales contract is cancelled under subsection (1), the following are also cancelled:

(

a) another related consumer transaction;

(

b) a guarantee given in respect of the total price under the contract;

(

c) security given by the consumer in respect of the total price under the contract; and

(

d) where credit is extended or arranged by the supplier in respect of a distance sales contract, the credit agreement, whether or not

the credit agreement is a part of or attached to the distance sales contract.

2009 cC-31.1 s32

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Refunds by supplier on cancellation

Where a distance sales contract is cancelled under

section 32

, the supplier, within 15 days after the notice of cancellation has been given, shall refund to the consumer, without deduction, all money received in respect of the contract and in respect of a related consumer transaction, whether received from the consumer or another person.

2009 cC-31.1 s33

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Return of goods by consumer on cancellation

(1)Where a distance sales contract is cancelled under

section 32

, the consumer, within 15 days after the notice of cancellation has been given or after the goods have been delivered to the consumer, whichever is later, shall return goods received under the contract by delivering the goods to the person or place named in the contract as the person to whom or as the place where notice of cancellation may be given.

(2) The consumer shall return the goods unused and in the same condition as that in which they were delivered.

(3) The consumer may return the goods by a method that permits the consumer to produce confirmation of the delivery to the supplier.

(4) The supplier shall accept the goods returned under subsection (2).

(5) The supplier is responsible for the reasonable cost of returning the goods.

(6) Goods that are returned by the consumer other than by delivery in person are considered to have been returned at the time the goods are sent.

2009 cC-31.1 s34

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Consumer's recourse regarding credit card charges

(1)A consumer who has charged to a credit card all or a part of the total price under a distance sales contract or a related consumer transaction may request the credit card issuer to cancel or reverse the credit card charge and associated interest or other charges where the consumer has cancelled the contract under

section 32

and the supplier has not refunded all money as required under

section 33

(2) The request under subsection (1) shall contain the following information:

(

a) the supplier's name;

(

b) the date the distance sales contract was entered into;

(

c) the amount charged to the credit card in respect of the distance sales contract and a related consumer transaction;

(

d) a description of the goods or services sufficient to identify them;

(

e) the reason for cancellation of the distance sales contract; and

(

f) the date and method of cancellation of the distance sales contract.

(3) The credit card issuer shall

(

a) acknowledge the consumer's request within 30 days of receiving it, and

(

b) if the request meets the requirements of subsection (2), cancel

or reverse the credit card charge and any associated interest or other charges within the earlier of

(i)

2 complete billing cycles of the credit card issuer, and

(ii)

90 days.

2009 cC-31.1 s35

Division 3

Distance Service Contracts

Rep. by 2022 c28 s12

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Rep. by 2022 c28 s12

35.1

[Rep. by 2022 c28 s12]

2022 c28 s12

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Rep. by 2022 c28 s12

35.2

[Rep. by 2022 c28 s12]

2022 c28 s12

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Rep. by 2022 c28 s12

35.3

[Rep. by 2022 c28 s12]

2022 c28 s12

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Rep. by 2022 c28 s12

35.4

[Rep. by 2022 c28 s12]

2022 c28 s12

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Rep. by 2022 c28 s12

35.5

[Rep. by 2022 c28 s12]

2022 c28 s12

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Rep. by 2022 c28 s12

35.6

[Rep. by 2022 c28 s12]

2022 c28 s12

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Rep. by 2022 c28 s12

35.7

[Rep. by 2022 c28 s12]

2022 c28 s12

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Rep. by 2022 c28 s12

35.8

[Rep. by 2022 c28 s12]

2022 c28 s12

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Rep. by 2022 c28 s12

35.9

[Rep. by 2022 c28 s12]

2022 c28 s12

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Rep. by 2022 c28 s12

35.10

[Rep. by 2022 c28 s12]

2022 28 s12

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Rep. by 2022 c28 s12

35.11

[Rep. by 2022 c28 s12]

2022 c28 s12

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Rep. by 2022 c28 s12

35.12

[Rep. by 2022 c28 s12]

2022 c28 s12

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Rep. by 2022 c28 s12

35.13

[Rep. by 2022 c28 s12]

2022 c28 s12

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Rep. by 2022 c28 s12

35.14

[Rep. by 2022 c28 s12]

2022 c28 s12

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Rep. by 2022 c28 s12

35.15

[Rep. by 2022 c28 s12]

2022 c28 s12

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Rep. by 2022 c28 s12

35.16

[Rep. by 2022 c28 s12]

2022 c28 s12

PART VI

CREDIT REPORTS

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Definitions

In this Part

(a)

"credit information" means information about an individual's credit, including the individual's name, age, place of residence, previous places of residence, marital status, spouse's name and age, number of dependants, particulars of education or professional qualifications, place of employment, previous places of employment, estimated income, paying habits, outstanding debt obligations, cost of living, or obligations and assets;

(b)

"credit reporting agency" means a person who is engaged in providing credit reports to another person, whether for remuneration or otherwise; and

(c)

"report" means a written, oral

or other communication respecting credit information of an individual.

2009 cC-31.1 s36

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Application of

Part

This Part does not apply to a credit reporting agency, the reports of which deal only with industrial or commercial enterprises and are distributed only to those enterprises.

2009 cC-31.1 s37

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Disclosure of consumer report

(1)A credit reporting agency shall not provide a credit report except

(

a) in response to an order of a court;

(

b) in accordance with the written instructions of the consumer to whom the credit report relates;

(

c) in response to an order or direction made under this Part;

(

d) with the prior consent of the consumer to whom the credit report relates, to a person that it has reason to believe

(

i) is involved in a business or credit transaction with the consumer, or

(ii)

intends to use the credit report for employment purposes; or

(

e) to the government of the province or of Canada, or to a peace officer acting in the course of

the peace officers duties.

(2) A person shall not seek to obtain a credit report from a credit reporting agency except for the purposes set out in subsection (1).

2009 cC-31.1 s38 ; 2022 c28 s13

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Contents of consumer report

(1)A credit report shall not contain

(

a) information of an unfavourable personal nature unless reasonable efforts have been made to corroborate the information, the absence of the corroboration is noted and accompanies the information, and the information is less than 7 years old;

(

b) information as to judgments or judicial proceedings for the recovery of money owing for goods or services, or based upon default under a conditional sale contract or mortgage or chattels or realty, 7 years after the default first occurred or the judgment was given;

(

c) information as to bankruptcies 7 years from the date of a discharge, except where a consumer has been bankrupt

more than once;

(

d) information as to debt 6 years after it has become due, unless the debt has been acknowledged by the debtor or the debtor's agent either in writing or by making part payment or partial satisfaction of the debt, in which case the 6 year

period runs from the date of the most recent acknowledgment of the debt;

(

e) information as to the non-payment of taxes or lawfully imposed fines 7 years after they have become due;

(

f) information as to convictions for crimes 7 years from the date of conviction or, where the conviction resulted in imprisonment, 7 years from the date of release or parole, but convictions for crimes shall not be reported after a full pardon has been granted;

(

g) information as to criminal charges where those charges have been dismissed or not proceeded with;

(

h) information as to race, religion, sex, political opinion, colour, or ethnic, national or social origin;

(

i) information as to writs that are more than 7 years old;

(

j) information as to writs that have been issued more than one year before the making of the credit report, unless the credit reporting agency has ascertained the current status

of the writ and has a record of its current status in the credit report; or

(

k) other information as prohibited by the regulations.

(2) A credit reporting agency shall not collect, store, retain or report credit information unless it is capable of corroboration from another source, and a reference to that source appears in the records of that agency.

(3) A credit reporting agency shall not collect, store, retain, or report personal information unless it has made reasonable efforts to corroborate the evidence on which the personal information is based

and a lack of corroboration is noted with the personal information and accompanies a consumer report including the personal information.

(4) A credit reporting agency shall not include in a credit report information other than the information stored in a form producible under

section 42

2009 cC-31.1 s39

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Credit report

Where the credit risk of a consumer is being assessed by a person, that person shall, upon the request of the consumer, inform the consumer if a credit report has been obtained and the name of the credit reporting agency.

2009 cC-31.1 s40

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Personal information

A person shall not procure or prepare a credit report containing personal information from a credit reporting agency unless that person notifies the consumer in writing of that persons intention to procure or prepare the report, together with the name and address of the credit reporting agency.

2009 cC-31.1 s41 ; 2022 c28 s14

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Disclosure of file to consumer

(1)A credit reporting agency, during normal business hours, upon the request of a consumer, and without charge,

(

a) shall disclose to the consumer whether or not it has collected or retains credit information respecting the consumer;

(

b) shall produce for examination in written form, clearly understandable to the consumer, the contents of all the credit information; and

(

c) shall disclose the names of the recipients of a credit report and the contents of the report, made within a period of one year before the request.

(2) The credit reporting agency concerned shall permit a person to whom credit information is disclosed under subsection (1) to make a copy.

2009 cC-31.1 s42 ; 2022 c28 s15

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Alteration of consumer information

(1)The director may direct the alteration, amendment, restriction

or prohibition of the use of credit information that in the directors opinion is inaccurate or does not comply with this Part, and the credit reporting agency concerned shall comply with the director's direction under this section.

(2) Where a credit reporting agency is directed to alter or amend credit information under subsection (1) or alters or amends incorrect credit information without a direction from the director, the credit reporting agency shall notify all persons who have been supplied with the credit report within one year before the alteration or amendment.

2009 cC-31.1 s43 ; 2022 c28 s16

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Sale

of files

A person who is or has been a credit reporting agency shall not sell or lease its files except to a credit reporting agency registered under this Part.

2009 cC-31.1 s44

PART VII

COST

OF CONSUMER CREDIT DISCLOSURE

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Interpretation

(1)In this Part

(a)

"advance" and "advanced" means value received in accordance with subsection (2 );

(b)

" APR

" means the annual percentage rate calculated in accordance with the regulations;

(c)

"associate", where used to indicate a relationship with a person means

(

i) a corporation of which that person beneficially owns or controls, directly or indirectly, shares or other securities currently convertible into shares, that carry more than 10% of the voting rights

(

A) under all circumstances,

(

B) because of the occurrence of an event that has occurred and is continuing, or

(

C) because of a currently exercisable option or right to purchase those shares or those convertible securities,

(ii)

a partner of that person acting on behalf of the partnership of which they are partners,

(iii)

a trust or estate in which that person has a substantial beneficial interest or in respect of which the person serves as trustee or in a similar capacity,

(iv)

a spouse or child of that person, or

(

v) a relative of that person or of the persons spouse where that relative has the same residence as that person;

(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 other 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;

(e)

"borrower" means an individual who has entered into

or who is negotiating to enter into a credit agreement if that individual, under that agreement, receives or is to receive credit from another party to the agreement, and

(

i) does not include a guarantor, and

(ii)

in Divisions 1 and 6 includes a lessee;

(f)

"brokerage fee" means an amount that a mortgagor or other borrower pays or agrees to pay to a mortgagee or loan broker as consideration for services in arranging, negotiating

or facilitating the granting of credit to the mortgagor or borrower and includes an amount that is

(

i) deducted from the amount of credit that is extended to the mortgagor or borrower under the credit agreement, and

(ii)

paid to the mortgagee or loan broker by the credit grantor;

(g)

"business day", with respect to a credit grantor, means a day on which the credit grantor is open for business;

(h)

"capitalized amount" means the cash value of the leased goods plus the amount of other advances made to the lessee at or before the beginning of the term, minus the total amount of all payments made by the lessee at or before the beginning of the term;

(i)

"cardholder" means an individual who is a borrower with respect to a credit card;

(j)

"cash customer" means a person who buys a product and who provides full payment for the product at or before the time of its receipt;

(k)

"cash price", with respect to a product, means

(

i) for a sale to a borrower by a credit grantor or by an associate of a credit grantor who sells the product to cash customers in the ordinary course of business an amount that fairly represents the price for which the seller sells that product to cash customers, or, if the seller and the borrower agree on a lower price, that lower price,

(ii)

for a sale to which subparagraph (

i) does not apply, the price agreed upon by the parties, or

(iii)

for an advertisement by a credit grantor or an associate of the credit grantor, the price at which the product is currently offered to cash customers or, if the credit grantor or the associate of the credit grantor does not currently offer the product to cash customers, the price stated in the advertisement, and

for the purpose of determining the amount advanced under a credit agreement, includes discounts, taxes and other charges payable by a cash customer;

(l)

"cash value" , in relation to leased goods, means

( i

where 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 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 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, or

(

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

(m)

"credit agreement" includes an agreement under which credit is extended that is

(

i) an agreement with respect to a loan of money, a credit sale, a line of credit or a credit card,

(ii)

a lease to which Divisions 1 and 6 apply, and

(iii)

a renewal of an agreement referred to in subparagraph (

i) or (ii );

(n)

"credit card" means a card or other device that can be used to obtain advances under a credit agreement for open credit;

(o)

"credit card issuer" means a person who is a credit grantor with respect to a credit card;

(p)

"credit grantor" means

(

i) a person who entered into

or is negotiating to enter into a credit agreement if that person, under that agreement, extends or is to extend credit to another party to the agreement,

(ii)

if the rights of the person referred to in subparagraph (

i) under the credit agreement are assigned to an assignee, that assignee, upon notice being given to the borrower,

(iii)

a credit card issuer,

(iv)

a mortgage broker and a loan broker, and

(

v) a lessor to whom Divisions 1 and 6 apply;

(q)

"credit sale" means a sale of a product in which the purchase is financed by the seller or manufacturer of the product or by an associate of the seller or manufacturer;

(r)

"default charge" means a charge imposed on a borrower who fails to make a payment as it becomes due under a credit agreement or who fails to comply with another obligation under a credit agreement, but does not include interest on an overdue payment;

(s)

"disbursement charge" means an expense that is incurred by a credit grantor for the purpose of arranging, documenting, insuring

or securing a credit agreement and charged by the credit grantor to the borrower that is

(

i) a fee paid to register a document or information in, or to obtain a document or information from a public registry of an interest in real or personal property,

(ii)

the cost of professional services required for the purpose of confirming the value, condition, location

or conformity to law of property that serves as security for a credit agreement if the borrower is given a report signed by the person providing the professional services and is free to give the report to third persons,

(iii)

for a high ratio mortgage as defined by regulation, a premium for insurance that protects the credit grantor against the risk of borrower default and a fee for tax account maintenance, and

(iv)

an expense designated by regulation as a disbursement charge;

(t)

"estimated residual cash payment" means the amount that a lessee will be required to pay to a lessor at the end of the term of a residual obligation lease if the realizable value of the leased goods at the end of the term equals their estimated residual value;

(u)

"estimated residual value" means the reasonable estimate, made by the lessor at the time the lease agreement was entered into, of the wholesale value of the leased goods at the end of the term;

(v)

"fixed credit" means credit under a credit agreement that is not for open credit;

(w)

"floating rate" means an interest rate that bears a specified mathematical relationship to an index rate that is an interest rate

(

i) subject to a minimum or a maximum rate, or

(ii)

determined at the beginning of a period and applies throughout the period regardless of changes in the index rate during the period;

(x)

"grace period" means a period in which interest accrues but will be forgiven if the borrower satisfies conditions specified in the credit agreement;

(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;

(z)

"index rate" means, with respect to a credit agreement, the rate that meets the criteria prescribed by regulation;

(aa)

"individual" means a natural person;

(bb)

"initial disclosure statement" means with respect to a credit agreement or a lease, the disclosure statement that is required under

section 47

for that credit agreement or lease;

(cc)

"interest" means charges that accrue over time and are determined by applying a rate to an amount that is owing from time to time under a credit agreement;

(dd)

"interest-free period" means a period following the making of an advance during which interest does not accrue on the advance;

(ee)

"lease" means an agreement for the hire of goods, except an agreement for the hire of goods with respect to a residential tenancy agreement;

(ff)

"lessee" means an individual who entered into or who is negotiating to enter into a lease if that individual, under that lease, hires or is to hire goods from another party to the agreement;

(gg)

"lessor" means a person who entered into or who is negotiating to enter into a lease if that person, under that lease, leases or is to lease goods to another party to the agreement;

(hh)

"loan broker" means a person who, for compensation, arranges, negotiates or facilitates an extension of credit;

(ii)

"mortgage broker" means a person who, for compensation, arranges, negotiates or facilitates an extension of a mortgage loan;

(jj)

"mortgage loan" means a loan of money secured by an interest in real property;

(kk)

"non-interest finance charge" means a charge that a borrower is required to pay with respect to a credit agreement, other than

(

i) interest,

(ii)

a prepayment charge,

(iii)

a default charge,

(iv)

a charge for an optional service,

(

v) a charge for a service referred to in paragraph (2)(f), (

g) or (h), or

(vi)

with respect to a credit sale, a charge that would also be payable by a cash customer;

(ll)

"open credit" means credit under a credit agreement if the credit agreement

(

i) anticipates multiple advances that are to be made when requested by the borrower in accordance with the agreement, and

(ii)

does not establish the total amount to be advanced to the borrower under the agreement although it may impose a credit limit;

(mm)

"option lease" means a lease that gives the lessee the right to acquire title to or retain permanent possession of the leased goods by making a payment in addition to the payments required under the lease or by satisfying other specified conditions;

(nn)

"option price" means the amount of the additional payment that the lessee shall make in order to exercise the option under an option lease;

( 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;

( oo

"outstanding balance" means the total amount owing at any particular time under a credit agreement;

(pp)

"payment" means value given by a borrower within the meaning of subsection (2 );

(qq)

"payment period" means one of the intervals into which the term of a credit agreement or a lease is divided for the purpose of determining the amount of and timing of payments;

(rr)

"periodic payment" means a payment that, under a credit agreement or a lease, is to be made with respect to each payment period established under that agreement or lease;

(ss)

"residual obligation lease" means a lease under which the lessee may be required at the end of the lease term to pay the lessor an amount based wholly or partly on the difference between the estimated residual value and the realizable value of the leased goods;

(tt)

"scheduled payments credit agreement" means a credit agreement for fixed credit under which the amount advanced is to be repaid in accordance with a specified

schedule of payments and that

schedule may be subject to adjustment to accommodate contingencies including changes in the interest rate;

(uu)

"security interest" means an interest in property that secures the borrowers obligations under a credit agreement;

(vv)

"spouse" means either of 2 persons who

(

i) are married to each other,

(ii)

are married to each other by a marriage that is voidable and has not been voided by a judgment of nullity, or

(iii)

have gone through a form of marriage with each other, in good faith, that is void and are cohabiting or have cohabited within the preceding year;

(ww)

"term", with respect to a lease, unless the context indicates otherwise, means the period during which the lessee is entitled to retain possession of the leased goods;

(xx)

"total cost of credit" means the difference between the value given or to be given within the meaning of subsection (4) by the borrower with respect to a credit agreement and the value received or to be received, within the meaning of subsection (2) by the borrower with respect to the credit agreement, disregarding the possibility of prepayment or default; and

(yy)

"total lease cost" means the total of non-refundable payments that the lessee will be required to make in the ordinary course of events.

(2) The following constitute value received or to be received by a borrower with respect to a credit agreement:

(

a) money transferred or to be transferred by the credit grantor to the borrower or to the order of the borrower under the credit agreement;

(

b) the cash price of a product purchased or to be purchased under the credit agreement;

(

c) the amount of a pre-existing monetary obligation of the borrower that is paid, discharged or consolidated by the credit grantor under the credit agreement;

(

d) the cash value of goods under a lease;

(

e) the amount of money obtained or to be obtained or the cash price of a product obtained or to be obtained through the use of a credit card obtained under the credit agreement;

(

f) a following expense if the credit grantor incurred or is to incur the expense for the purpose of arranging, documenting, insuring

or securing the credit agreement:

(

i) fees to a third party to record or register a document or information in, or to obtain a document or information from, a public registry of interest in real or personal property,

(ii)

fees for professional services required for the purpose of confirming the value, condition, conformity to law or location of property that serves as security for a credit agreement, if the borrower is given a report signed by the person providing the professional services and is free to give the report to other persons,

(iii)

premiums for

(

A) insurance that protects the credit grantor against default on a high-ratio mortgage,

(

B) casualty insurance on the subject matter of a security interest if the borrower is a beneficiary of the insurance and the insured amount is the full insurable value of the subject matter, and

(

C) insurance provided or paid for by the credit grantor with respect to a credit agreement if the insurance is optional, and

(iv)

an application fee for insurance referred to in clause (iii)(A );

(

g) service provided or to be provided by the credit grantor to maintain a tax account on a high-ratio mortgage, expressed in the amount of a reasonable fee for that service, whether the tax account is required with respect to the credit agreement or is requested by the borrower; and

(

h) anything designated under the regulations as value received by the borrower for the purpose of this subsection.

(3) Notwithstanding subsection (2), the following do not constitute value received or to be received by a borrower with respect to a credit agreement unless they relate to an optional service, expense, service

or thing under paragraph (2)(

f) or (g):

(

a) money paid or to be paid, an expense incurred or to be incurred or anything done or to be done by the credit grantor for the purpose of arranging, documenting, securing, administering or renewing the credit agreement;

(

b) insurance provided or paid for or to be provided or paid for by the credit grantor with respect to the credit agreement; and

(

c) another thing that may be prescribed by regulation for the purpose of this subsection.

(4) The following constitutes value given or to be given by a borrower with respect to a credit agreement:

(

a) money transferred or to be transferred from the borrower to the credit grantor with respect to the credit agreement;

(

b) money transferred or to be transferred from the borrower to a person other than the credit grantor with respect to a charge for services that the credit grantor requires the borrower to obtain or pay for with respect to the credit agreement, unless the charge

(

i) is for an expense to which paragraph (2)(

f) or (

h) would have applied if the expense had been incurred initially by the credit grantor and then charged directly to the borrower,

(ii)

is for services provided by a lawyer chosen by the borrower, or

(iii)

is for charges for shares in a credit union that a borrower shall buy as a condition of entering into a credit agreement with the credit union; and

(

c) another thing that may be prescribed by regulation for the purpose of this subsection.

2009 cC-31.1 s45 ; 2010 c11 s1 ; 2010 c31 s5 ; 2022 c28 s17

Division 1

Application

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Application

(1)This Part applies to a

(

a) credit agreement where

(

i) the borrower is an individual who enters into a credit agreement for primarily personal, family or household purpose, and

(ii)

either

(

A) the credit grantor enters into the agreement in the ordinary course of business, or

(

B) the credit agreement is arranged by a loan broker; and

(

b) borrower, credit agreement, credit grantor or loan broker or a class of borrowers, credit agreements, credit grantors or loan brokers prescribed in the regulations.

(2) For the purpose of subparagraph (1)(a)(i), a credit grantor is entitled to rely on a statement in a credit agreement or other document regarding the purpose for which a borrower enters into a credit agreement, if the statement is signed by the borrower and the credit grantor believes in good faith that the statement is true.

(3) Notwithstanding subsection (1), this Part does not apply to

(

a) a credit sale where all of

the following occur:

(

i) the credit sale anticipates a single payment in the full amount for the product within a certain period after a written invoice or statement of account is delivered to the buyer,

(ii)

the credit sale is unconditionally interest-free during the payment period referred to in subparagraph (i),

(iii)

the credit sale is unsecured, apart from a lien on the product that may arise by operation of law,

(iv)

the credit sale is not assigned in the ordinary course of the credit grantors business otherwise than as security, and

(

v) the credit sale does not provide for non-interest finance charges; or

(

b) a borrower, credit agreement, credit grantor or loan broker, or a class of borrowers, credit agreements, credit grantors or loan brokers, exempted under the regulations.

(4) For the purpose of credit agreements that are payday loans,

Part VII.1 applies instead of this Part.

2009 cC-31.1 s46 ; 2016 c46 s2

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Delivery of disclosure statements

(1)A credit grantor who has entered into

or is negotiating to enter into a credit agreement with an individual who is the borrower under that agreement shall deliver to the borrower a disclosure statement with respect to that credit agreement before the earlier of the date on which the borrower

(

a) enters into the credit agreement; or

(

b) makes a payment in connection with the credit agreement.

(2) Notwithstanding subsection (1), a credit grantor who has entered into

or who is negotiating to enter into a credit agreement to provide a mortgage loan to an individual who is the borrower under that agreement shall deliver a disclosure statement with respect to that credit agreement to the borrower in accordance with the regulations.

2009 cC-31.1 s47

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Disclosure

(1)A credit grantor who is required to provide a disclosure statement or a statement of account under this Part shall ensure that the statement

(

a) is in writing or another form that is consented to, in writing by the borrower, and the credit grantor shall retain that statement and consent as a record for future use;

(

b) contains the information required under this Part; and

(

c) expresses that information clearly, concisely, in a logical order and in a manner that is likely to bring the information to the borrowers attention.

(2) A disclosure statement or a statement of account may be a separate document or part of another document provided to the borrower.

(3) Information disclosed under this Part whether in a disclosure statement, advertisement or otherwise may be based on an estimate or assumption if the

(

a) disclosure depends on information that is not ascertainable by the credit grantor at the time of the disclosure; and

(

b) estimate or assumption is reasonable and is clearly identified in the document effecting the disclosure as an estimate or assumption.

(4) Where an advertisement is published and information is disclosed in that advertisement that, under this Part, requires other information to be included in that advertisement, the credit grantor who publishes or on whose behalf the advertisement is published shall disclose the information in the manner required by regulation.

(5) Where information in a disclosure statement is inconsistent with information or a provision set out in the credit agreement, the credit agreement is presumed to incorporate the information or provision that is more favourable to the borrower, unless it is proven that the less favourable information or provision reflects the borrowers actual understanding of the provisions of the agreement.

2009 cC-31.1 s48

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Delivery

(1)Where there is more than one borrower under a credit agreement, a disclosure statement or other document that is required to be delivered to the borrowers may be delivered to one of the borrowers, and it is unnecessary to deliver a separate copy to each borrower.

(2) A document sent by ordinary mail to a borrower at the mailing address provided by the borrower to the credit grantor shall be considered, in the absence of evidence to the contrary, to have been delivered to the borrower 7 days after it was sent.

2009 cC-31.1 s49

Division 2

Rights and Obligations

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Insurer

(1)A borrower who is required by a credit grantor to purchase insurance may purchase it from an insurer authorized to provide that type of insurance in the province

but the credit grantor may, on reasonable grounds, reserve the right to disapprove an insurer selected by the borrower.

(2) A credit grantor who offers to provide or to arrange insurance referred to in subsection (1) shall, at the time of that offer, clearly disclose to the borrower in writing that the borrower may, in accordance with subsection (1), purchase the required insurance through an insurance agent and insurer of the borrowers choice.

2009 cC-31.1 s50

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Cancellation of optional services

(1)A borrower may cancel an optional service of a continuing nature that is provided by the credit grantor or an associate of the credit grantor by giving 30 or more days notice or a shorter period of notice where that shorter notice is provided for by the agreement under which the service is provided.

(2) A borrower who cancels an optional service under subsection (1) is

(

a) not liable for charges relating to a portion of the service that has not been provided at the time of the effective date of the cancellation; and

(

b) entitled to a refund of an amount already paid for those charges.

2009 cC-31.1 s51

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Prepayment of credit

(1)This

section does not apply to mortgage loans.

(2) A borrower is entitled to prepay the full outstanding balance owing under a credit agreement without a prepayment charge or penalty.

(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.

(4) A borrower is entitled, on a scheduled payment date or at least monthly, to prepay less than the full outstanding balance owing under a credit agreement for fixed credit, without a prepayment charge or penalty, but, in that event, is not entitled to a refund or credit of non-interest finance charges.

2009 cC-31.1 s52 ; 2010 c11 s2

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Default charges

A credit agreement shall not impose default charges other than reasonable charges

(

a) with respect to legal costs incurred in collecting or attempting to collect payment;

(

b) with respect to costs, including legal costs, incurred in realising a security interest or protecting the subject matter of a security interest after default; and

(

c) that reflect costs incurred by the credit grantor because a cheque or other payment instrument given by the borrower to the credit grantor was dishonoured.

2009 cC-31.1 s53

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Invitation to defer payment and acceleration clause

(1)Where a credit grantor invites a borrower to defer making a payment that would otherwise be due under a credit agreement, the credit grantor shall, in that invitation, clearly disclose whether or not

interest will accrue on the unpaid amount during the period for which the payment is deferred.

(2) Where an invitation referred to in subsection (1) does not disclose whether or not

interest will accrue on the unpaid amount during the period for which payment is deferred, the credit grantor shall be considered to have waived the interest that would otherwise accrue during that period.

(3) Notwithstanding anything in a credit agreement, the whole or part of the outstanding balance does not become payable or otherwise accelerated, and an interest rate made specially

applicable to the outstanding balance does not become effective in accordance with the acceleration clause, until written notice of the default or other event

(

a) is served personally on the borrower; or

(

b) is sent by registered mail to the borrower at the borrowers latest address as shown on the records of the credit grantor.

(4) Notwithstanding subsection (3), if the credit grantor sends a notice under paragraph (3)(b), the whole or part of the outstanding balance does not become payable or otherwise accelerated, and an interest rate made specially

applicable to the outstanding balance does not become effective until 10 days after the date the notice was sent to the borrower.

(5) In this section, "acceleration clause" means a clause in a credit agreement that provides that on default by the borrower or on the occurrence of another event, and whether or not

at the option of the credit grantor, the whole or a part of the outstanding balance becomes immediately payable or is otherwise accelerated.

2009 cC-31.1 s54

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Non-business credit grantors

Where a loan broker secures for a borrower an extension of credit from a credit grantor who does not provide credit in the ordinary course of carrying on business,

(

a) the provisions of this Part and the regulations that impose a duty on a credit grantor shall be read as imposing that duty on the loan broker rather than on the credit grantor; and

(

b) where the borrower pays or is required to pay a brokerage fee, the loan broker shall ensure that the initial disclosure statement for the credit agreement

(

i) discloses the amount of the brokerage fee, and

(ii)

accounts for the brokerage fee in the APR

and the total cost of credit where the credit is a fixed credit.

2009 cC-31.1 s55 ; 2010 c11 s3

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Business credit grantors

(1)Where a loan broker secures for a borrower an extension of credit from a credit grantor who does provide credit in the ordinary course of carrying on business,

(

a) if the credit grantor deducts a brokerage fee from the value received or to be received by the borrower in accordance with subsections 45

(2) and (3), the credit grantor shall ensure that the initial disclosure statement for the credit agreement

(

i) discloses the amount of the brokerage fee, and

(ii)

accounts for the brokerage fee in the APR

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

(

b) if the loan broker takes a loan application from the borrower and forwards it to the credit grantor, the loan broker shall give to the borrower

(

i) a disclosure statement containing the information referred to in paragraph (a), and

(ii)

other information that, under this Part, is required to be disclosed in the initial disclosure statement for the credit agreement.

(2) Where a loan broker gives a borrower a disclosure statement under paragraph (1)(b), the credit grantor may

(

a) adopt that disclosure statement as its own, in which case the credit grantor is jointly and individually liable with the loan broker for the content of that statement; or

(

b) elect to deliver to the borrower a separate disclosure statement containing the information that is required to be disclosed under this Part.

2009 cC-31.1 s56 ; 2010 c11 s4

Division 3

Fixed Credit

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Application

(1)This Division applies only to credit agreements that extend fixed credit.

(2) Where this Division applies to a credit sale, the credit grantor shall ensure that the credit agreement is a scheduled payments credit agreement.

2009 cC-31.1 s57

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Advertising

(1)This

section applies only to advertisements that

(

a) offer credit to which this Division applies; and

(

b) state the interest rate or amount of a payment.

(2) A credit grantor shall ensure that every advertisement to which this

section applies that is published by or on behalf of the credit grantor discloses the APR

and the term with respect to the proposed credit agreement.

(3) A credit grantor to which subsection (2) applies shall ensure that if the advertisement is for a credit sale of a specifically identified product,

(

a) the advertisement discloses the cash price of that product; or

(

b) in connection with which a non-interest finance charge is to be payable, the advertisement discloses the

(

i) cash price of the product, and

(ii)

total cost of credit.

2009 cC-31.1 s58

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Advertising interest-free periods

(1)An advertisement that states or implies that no interest is payable for a certain period with respect to a transaction shall disclose whether

(

a) the transaction is unconditionally interest-free during the period; or

(

b) interest accrues during the period but will be forgiven under certain conditions.

(2) Where interest accrues during a period but will be forgiven under certain conditions, the advertisement shall also disclose

(

a) those conditions; and

(

b) the APR

that will apply to the period if those conditions are not met.

(3) An advertisement to which subsection (1) applies that does not disclose the information required under paragraph (1)(

b) and subsection (2) shall be considered to represent that the transaction is unconditionally interest-free during the relevant period.

2009 cC-31.1 s59

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Disclosure statements

(1)A credit grantor who has entered into

or who is negotiating to enter into a scheduled payments credit agreement shall ensure that the disclosure statements for that credit agreement disclose the information required by regulation.

(2) A credit grantor who has entered into

or is negotiating to enter into a credit agreement that is not a scheduled payment credit agreement shall ensure that the disclosure statements for that credit agreement disclose the information required by regulation.

2009 cC-31.1 s60

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Interest change disclosure

(1)In addition to the disclosure statement required under

section 60

, where the interest rate is a floating rate, the credit grantor shall, at least once every 12 months, deliver to the borrower a disclosure statement that contains the information required by regulation.

(2) In addition to the disclosure statement required under

section 60

, where the interest rate is not a floating rate but is subject to change, the credit grantor shall, within 30 days after the date on which the annual interest rate becomes one percent or more higher than the rate most recently disclosed to the borrower in writing, deliver to the borrower a disclosure statement that contains the following information:

(

a) the date of the statement;

(

b) the new annual interest rate and the date that the new annual interest rate takes effect; and

(

c) the new amount, and timing, of payments to be made after the date referred to in paragraph (b).

2009 cC-31.1 s61

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Increases in outstanding principal

(1)In addition to another document that the credit grantor is required to deliver to the borrower, the credit grantor shall deliver to the borrower a notice, in writing, in accordance with subsection (2) where

(

a) the outstanding principal on a scheduled payments credit agreement increases, as a result of

(

i) the compounding of interest on a missed or late payment, or

(ii)

the imposition of a default charge; and

(

b) as a result of

the increases in outstanding principal, the total amount of the payments the borrower is scheduled to make over a payment period does not cover the interest that will accrue during that payment period.

(2) A notice under subsection (1) shall

(

a) be delivered to the borrower not more than 30 days after the most recently missed or late payment or default payment imposed; and

(

b) specify

(

i) that the outstanding principal has increased and why,

(ii)

that, because of the increase in principal

, the subsequent scheduled payments will not cover the interest that will accrue in each payment period, and

(iii)

what the total outstanding balance will be at the end of the term if the amount of subsequent scheduled payments is not adjusted.

2009 cC-31.1 s62

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Amendments

(1)Where a credit agreement is amended, the credit grantor shall deliver a supplementary disclosure statement to the borrower not later than 30 days after the amendment is made.

(2) The credit grantor shall ensure that a supplementary disclosure statement sets out the changed information

but that statement need not repeat information that is unchanged since the previous disclosure statement.

(3) This

section does not apply to changes effected by a renewal to which

section 64

applies.

2009 cC-31.1 s63

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Mortgage renewal disclosure

(1)Where the amortization period for a mortgage loan under a scheduled payments credit agreement is longer than the term of the mortgage, the credit grantor shall notify the borrower, in writing, not fewer than 21 days before the end of the term, whether or not

the credit grantor is willing to renew the mortgage for a further term.

(2) A credit grantor who is willing to renew a mortgage shall include, with the notice referred to in subsection (1), a disclosure statement, based upon the assumption that the borrower will make payments that are due under the current mortgage that includes the information required by regulation.

(3) Where a credit grantor fails to provide the borrower with a renewal statement for a mortgage loan 21 or more days before the effective date of the renewal agreement, the borrowers rights under the original loan agreement continue to apply until 21 days after the renewal statement is provided to the borrower.

(4) Subsection (3) does not apply where

(

a) a credit grantor delivers to a borrower a disclosure statement with respect to the renewed mortgage not fewer than 21 days before the effective date of the renewed mortgage; and

(

b) that statement does not reflect the terms of the renewed mortgage by reason only that the

(

i) outstanding balance of the mortgage loan on the effective date of the renewed mortgage differs from that stated in the disclosure statement because of one or more missed, late, early

or extra payments,

(ii)

interest rate under the renewed mortgage is lower than the interest rate stated in the disclosure statement, or

(iii)

amortization period or frequency of payments under the renewed mortgage differs from what was stated in the disclosure statement.

(5) Where subsection (4) applies, the credit grantor shall, not more than 30 days after the effective date of the renewed mortgage, deliver to the borrower a revised disclosure statement that reflects the terms of the renewed mortgage.

2009 cC-31.1 s64

Division 4

Open Credit

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Application

This Division applies to credit agreements that extend open credit.

2009 cC-31.1 s65

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Advertising

A credit grantor including a credit grantor associated with a credit card shall ensure that an advertisement that is published by or on behalf of the credit grantor shall disclose

(

a) the current annual interest rate; and

(

b) initial or periodic non-interest finance charges.

2009 cC-31.1 s66

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Interest free periods

(1)An advertisement that states or implies that no interest is payable for a certain period with respect to a transaction under a credit agreement shall disclose whether

(

a) the transaction is unconditionally interest free during the period; or

(

b) interest accrues during the period but will be forgiven under certain conditions.

(2) Where interest accrues during the period but will be forgiven under certain conditions, the advertisement shall also disclose

(

a) those conditions; and

(

b) the annual interest rate for the period, assuming those conditions are not met.

(3) An advertisement to which subsection (1) applies that does not disclose the information required under paragraph (1)(

b) and subsection (2) shall be considered to represent that the transaction is unconditionally interest free during the relevant period.

2009 cC-31.1 s67

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Open credit disclosure

A credit grantor who has entered into

or who is negotiating to enter into a credit agreement shall ensure that the initial disclosure statement for that credit agreement discloses the information required by regulation.

2009 cC-31.1 s68

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Statements of account

(1)A credit grantor shall, at least monthly, deliver to the borrower a statement of account containing as much of the following information as applicable

(

a) period covered by the statement and that period shall run from the date of the first advance or, where a statement has been delivered under this section, from the date of the statement of account most recently delivered to the borrower;

(

b) outstanding balance at the beginning of the statement period;

(

c) posting date, description and amount of each transaction or charge added to the outstanding balance during the statement period;

(

d) posting date and amount of each payment or credit subtracted from the outstanding balance during the statement period;

(

e) annual interest rate or rates in effect during the statement period or a part of the period;

(

f) total of all amounts added to the outstanding balance during the statement period;

(

g) total of all amounts subtracted from the outstanding balance during the statement period;

(

h) outstanding balance at the end of the statement period;

(

i) credit limit;

(

j) minimum payment;

(

k) due date for payment;

(

l) amount that the borrower shall pay on or before the due date in order to take advantage of a grace period;

(

m) borrowers rights and obligations regarding the correction of billing errors; and

(

n) telephone number required under subsection (3).

(2) Notwithstanding subsection (1), a credit grantor is not required to send a statement of account to a borrower at the end of a period during which there has been no advance of payment where

(

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

(

b) the borrower is in default and the credit grantor has

(

i) demanded payment of the outstanding balance, and

(ii)

given notice to the borrower that the borrowers privileges to obtain advances under the agreement have been cancelled or suspended due to the default.

(3) A credit grantor shall provide a telephone number that the borrower can use to obtain information about the borrowers account during the credit grantors ordinary business hours and without incurring charges for the call, and the credit grantor shall ensure that that information is available at that number during those hours.

2009 cC-31.1 s69 ; 2010 c11 s5

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Transaction description

A transaction is sufficiently described if the description in the statement of account, along with a transaction record included with the statement of account or made available to the borrower at the time of the transaction, can reasonably be expected to enable the borrower to verify the transaction.

2009 cC-31.1 s70

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Credit card by application

(1)A credit card issuer shall not issue a credit card to an individual who has not applied for the card.

(2) Subsection (1) does not apply to a credit card issued to an individual to replace or renew a card that was applied for by and issued to that individual.

2009 cC-31.1 s71

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Application for credit card

(1)A credit grantor who has entered into

or who is negotiating to enter into a credit agreement for a credit card shall ensure that the application form for that credit card discloses the information required by regulation.

(2) Notwithstanding subsection (1), instead of disclosing the information required under that subsection, the application form may disclose a telephone number that the cardholder can use to obtain that information during the credit card issuers ordinary business hours and without incurring charges for the call, and the credit card issuer shall ensure that that information is available at that number during those hours.

(3) Notwithstanding subsection (2), where an individual applies for a credit card in person, by telephone or by electronic means, the credit card issuer shall disclose the information referred to in subsection (1) when the individual makes the application.

(4) An individual who applies for a credit card without signing an application form shall be considered, on using the credit card for the first time, to have entered into a credit agreement with respect to that card in the terms of the disclosure statement referred to in subsection (5).

(5) Nothing in this

section relieves the credit card issuer from the requirement to deliver a disclosure statement in accordance with sections 54

and 73

2009 cC-31.1 s72

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Additional credit card disclosure

(1)In addition to the disclosure requirements of

section 69

, a credit card issuer shall disclose, in the initial disclosure statement for a credit card, the card holders maximum liability for unauthorised use of the credit card if it is lost or stolen.

(2) The credit card issuer shall notify the cardholder of a change in the information disclosed in a disclosure statement,

(

a) in the case of a change to the following information, in the next statement of account following the change in information or in a document that is given to the cardholder with the next statement of account:

(

i) a change in the credit limit,

(ii)

a decrease in the interest rate or the amount

of other charges,

(iii)

an increase in the length of an interest free period or grace period, and

(iv)

a change in the floating interest rate; or

(

b) in another case, at least 30 days before the date that the change takes effect.

2009 cC-31.1 s73

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Limitation of liability

(1)A cardholder who has, orally or in writing, reported a lost or stolen credit card, or the unauthorised use of the credit card or credit card number, to the credit card issuer is not liable for a debt incurred through the use of

that card after the credit card issuer receives the report.

(2) The maximum total liability of a cardholder arising from unauthorised use of a lost or stolen credit card before the issuer receives notice under subsection (1) is the lesser of

(a)

$50; or

(

b) the maximum amount set by the credit agreement with respect to the credit card.

(3) Subsection (2) does not apply to the use of a credit card in conjunction with a personal identification number at a device commonly referred to as an automated teller machine.

2009 cC-31.1 s74

Division 5

Leases of Goods

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Application

This Division applies only to a lease that is

(

a) for a fixed term of 4 months or more;

(

b) for an indefinite term or is renewed automatically until one of the parties takes positive steps to terminate it; or

(

c) a residual obligation lease

2009 cC-31.1 s75

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Advertising requirements

A lessor shall ensure that every advertisement that is published by or on behalf of the lessor and that gives specific information about the cost of a lease discloses the following information:

(

a) that the transaction is a lease;

(

b) the term of the lease;

(

c) the nature and amounts of payments that are payable by the lessee on or before the beginning of the term;

(

d) the amount, timing and number of the periodic payments;

(

e) the nature and amount

of other payments that are payable by a lessee in the ordinary course of events;

(

f) the lease APR

; and

(

g) where required under this or another Part or another Act, information regarding extra charges based on the usage of the leased goods.

2009 cC-31.1 s76

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Disclosure

(1)A lessor who has entered into

or who is negotiating to enter into a lease shall ensure that the initial disclosure statement for that lease discloses the information required by regulation.

(2) The lessor shall deliver the initial disclosure statement to the lessee before the lessee enters into

the lease or makes a payment with respect to the lease.

2009 cC-31.1 s77

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Maximum liability for residual obligation lease

Notwithstanding paragraph 45

( 1)(

ss), the maximum liability of a lessee at the end of the term of a residual obligation lease after returning the leased goods to the lessor is the sum of the following amounts as calculated in accordance with the regulations:

(

a) the estimated residual cash payment; and

(

b) the estimated residual value less the realizable value of the leased goods.

2009 cC-31.1 s78

Division 6

Compliance

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Interpretation

For the purpose of

this Division, a credit grantor shall be considered to have a compliance procedure where that credit grantor

(

a) requires its employees and agents to follow procedures or has implemented automated procedures designed to ensure that borrowers receive the information to which they are entitled at the time and in the form required under this Part; and

(

b) monitors the effectiveness of the measures referred to in paragraph (

a) and promptly remedies deficiencies in their design or implementation.

2009 cC-31.1 s79

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Recovery of overpayments and compensation

(1)Notwithstanding an agreement to the contrary, where a borrower makes a payment to a credit grantor that the credit grantor is not entitled to receive, the credit grantor shall refund the payment to the borrower or, where the parties agree, credit the payment against the outstanding balance under the credit agreement as of the time the payment was made.

(2) A credit grantor who contravenes this Part shall compensate a borrower for a loss the borrower suffers because of the contravention and the compensation to which the borrower is entitled may be set off against the outstanding balance of the credit agreement or may be recovered from the credit grantor in an action in a court.

2009 cC-31.1 s80

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Remedies

(1)A contravention of this

Part is an excusable error where

(

a) the credit grantor had a compliance procedure to prevent or identify a contravention when the contravention occurred;

(

b) the contravention was accidental or the result of an employees or agents failure to follow the compliance procedure; and

(

c) on discovering the contravention, the credit grantor promptly took steps to minimize its effect on an affected borrower.

(2) Where a credit grantor contravenes this

Part in relation to a credit agreement and the contravention is not an excusable error, the borrower is entitled, in addition to another remedy to which the borrower may be entitled, to recover the damages provided for under this

section from the credit grantor in an action in a court of competent jurisdiction.

(3) The damages for a contravention of this Part are the lesser of $500 and 5% of whichever of the following is applicable:

(

a) for a credit agreement for fixed credit, the maximum outstanding balance;

(

b) for a lease, the capitalized amount; and

(

c) for a credit agreement for open credit,

(

i) with a specified credit limit, the credit limit, and

(ii)

without a specified credit limit, $500.

(4) Where a contravention of this Part relates to a statement of account for open credit, the damages are equal to the interest and non-interest finance charges for the period covered by the statement of account.

(5) A court may reduce the damages to which a borrower would otherwise be entitled under this

section if the court is satisfied, in view of all the circumstances, including an undertaking as to future compliance that is given by the credit grantor, that it would be appropriate to do so.

(6) The damages to which a borrower is entitled may be set off against an amount otherwise payable by the borrower to the credit grantor.

(7) A remedy under this

Part is in addition to and does not derogate from another legal, equitable or statutory remedy.

(8) A court may award exemplary damages to a borrower against a person who has deliberately contravened this Part or if the court considers that the conduct of that person justifies an award of exemplary damages.

2009 cC-31.1 s81

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Assignee

(1)Except as otherwise provided in this section, a borrower may assert against a person to whom the rights of a credit grantor have been assigned, rights or remedies under

section 49

, 80

or 81

that the borrower could have asserted against the original credit grantor.

(2) The assignees maximum liability under a

section referred to in subsection (1) is limited to the outstanding balance at the time of the assignment or the proportion of the outstanding balance that is assigned to the assignee.

(3) An assignee does not incur liability under this

section for a credit grantors contravention of this Part unless

(

a) the assignee knew of the contravention before the borrower received notice of the assignment;

(

b) the contravention consists of the credit grantors failure to deliver a disclosure statement to the borrower; or

(

c) the contravention is apparent on the face of the disclosure statement or is apparent by comparing the disclosure statement with the written terms of the credit agreement.

(4) An assignee is entitled to rely in good faith on a borrowers signed acknowledgement of receipt of a disclosure statement.

2009 cC-31.1 s82

Division 7

Regulations

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Regulations

(1)The Lieutenant-Governor in Council may make regulations for the purpose of this Part

(

a) defining a word for the purpose of this Part where that word is not defined in this Part;

(

b) respecting the calculation of

(

i) APR

(ii)

lease APR

(iii)

the penalty payable for the early termination of a lease, and

(iv)

another matter that under this

Part is to be determined by calculation;

(

c) respecting the criteria to be used in determining what constitutes an index rate;

(

d) for the purpose of subparagraph 45(1)(s)(iv );

(

e) prescribing credit agreements or classes of credit agreements to which this Part applies or does not apply;

(

f) respecting the information that shall be disclosed in a disclosure statement;

(

g) respecting the form and manner in which information required to be disclosed under this

Part is to be disclosed;

(

h) defining for the purpose of advertisements, what constitutes a representative transaction and prescribing information that shall be disclosed in an advertisement that refers to one or more representative transactions;

(

i) respecting high ratio mortgages and realizable value;

(

j) for the purpose of subsection 72(1);

(

k) respecting the manner in which the estimated residual cash payment and the realizable value of leased goods is to be calculated;

(

l) respecting the determination that a thing received or to be received by a borrower as value received or to be received or as not constituting value received or to be received;

(

m) designating anything given or to be given by a borrower as value given or to be given;

(

n) prescribing expenses for the purpose of this Part;

(o)

(

p) prescribing the portion and manner of refunding and crediting non-interest finance charges;

(

q) prescribing information respecting extra charges for the purpose of paragraph 76

(g);

(

r) respecting the form, contents and manner in which information and records may be disclosed or delivered under this Part and, for a prescribed manner of delivery, prescribing the time on which a record delivered in that manner is considered to be received by the person to whom it was delivered;

(

s) requiring credit grantors and loan brokers or one or more classes of them to retain one or more records required under this Part for a specified period and prescribing when, how and to whom those records are to be made available for examination, extracts and copying;

(

t) exempting, generally or in specified circumstances, certain classes of persons from all or a Division of this Part and the regulations;

(

u) respecting designated expenses;

(

v) prescribing the application or non application of this Part for the purpose of paragraphs 46

(1)(

b) and 46

(3)(b );

(

w) respecting the waiver or variation of time periods by agreement or otherwise; and

(

x) generally, to give effect to the purpose of this Part.

(2) Regulations made under this

section may be made with retroactive effect.

2009 cC-31.1 s83

PART VII.1

PAYDAY LOANS

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Definitions

83.1

In this Part

(a)

"advance" has the same meaning as in

Part VII;

(b)

"APR" has the same meaning as in

Part VII;

(c)

"borrower" means an individual who has entered into or who is negotiating to enter into a payday loan agreement for primarily a personal, family or household purpose, where that individual, under that agreement, receives or is to receive a payday loan from a payday lender;

(d)

"cash card" means a card or other device issued by a payday lender to the borrower of a payday loan instead of advancing cash or transferring money to the order of the borrower that can be used to obtain cash or acquire goods and services, but does not include a credit card;

(e)

"credit card" has the same meaning as in

Part VII;

(f)

"interest" means charges that accrue over time and are determined by applying a rate to the principal of a payday loan from time to time under the payday loan agreement;

(g)

"payday lender" means a person who offers, arranges

or provides payday loans to or for consumers; and

(h)

"payday loan" means an advance of money with a principal of $1,500 or less and a term of 62 days or less made in exchange for a post-dated cheque, a pre-authorized debit

or a future payment of a similar nature, but not for a guarantee, suretyship, overdraft protection or security on property and not through a margin loan, pawnbrokering

, a line of credit or a credit card.

2016 c46 s3

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Application

83.2

(1)This Part applies

(

a) to every payday lender who offers, arranges

or provides a payday loan to a borrower in the province, whether the payday lender operates from business premises, by telephone or on the internet; and

(

b) to each payday loan, regardless of the number of payday lenders involved in the payday loan.

(2) This Part does not apply to a payday loan made before the coming into force of this Part, except to the extent that it relates to an extension or renewal of a payday loan made or granted after the coming into force of this Part.

2016 c46 s3

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Limits on total cost of borrowing

83.3

(1)The Lieutenant-Governor in Council may, by regulation, set the amount, or establish a rate, formula

or method of determining the amount, respecting the maximum total cost of borrowing that may be charged by a payday lender.

(2) The Lieutenant-Governor in Council may, in addition to subsection (1) and by regulation, determine a charge, fee, penalty, rate or commission that may be charged by a payday lender.

(3) A payday lender shall not charge, require

or accept from the borrower an amount that exceeds a maximum set or determined under subsection (1) or (2).

2016 c46 s3

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Prohibited practices

83.4

A payday lender shall not engage in a prohibited practice as prescribed by the regulations.

2016 c46 s3

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Cooling off period

83.5

(1)A borrower under a payday loan agreement may, without a reason, cancel the agreement at a time before the end of

(

a) the second day after the payday lender gives a copy of the agreement to the borrower, if the payday lender is open for business on that day; or

(

b) the next day that the payday lender is open for business following the second day described in paragraph (a ), if

the payday lender is not open for business on that second day.

(2) A borrower who wishes to cancel a payday loan agreement shall

(

a) give written notice within the time period

set out in subsection (1) to the payday lender; and

(

b) return the full amount received by the borrower to the payday lender.

(3) In giving notice of cancellation under subsection (2), a borrower may

(

a) use the copy of the cancellation notice provided by the payday lender under

section 83.6; or

(

b) provide notice in writing, signed by the borrower, of the borrower's intention to cancel the payday loan agreement.

(4) On receiving notice of cancellation from a borrower under this section, the payday lender shall give the borrower a receipt in the form approved by the minister acknowledging receipt of the loan cancellation.

(5) A payday lender shall not charge a fee for the cancellation of a payday loan.

2016 c46 s3

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Agreement and advance

83.6

(1)A payday lender shall ensure that the terms, information

and statements contained in its standard loan agreement are written in a clear and comprehensible manner.

(2) A payday lender shall ensure that the payday loan agreement includes all of

the following terms, information and statements:

(

a) the payday lender's name and, where different, the name under which the payday lender carries on business;

(

b) the payday lender's business address and, where different, the payday lender's mailing address;

(

c) the payday lender's licence number, telephone number and where the payday lender has a fax number or email address, that fax number and email address;

(

d) the borrower's name;

(

e) the date of the agreement and the date or dates on which the first advance and other advances shall be made to the borrower or to the order of the borrower;

(

f) the principal of the payday loan;

(

g) the term of the payday loan;

(

h) the amount of cash advanced to the borrower or the amount of money transferred to the borrower or to the order of the borrower;

( i

the amount of credit available on a cash card issued to the borrower;

(

j) where a cash card issued to the borrower has an expiry date, the date of that expiration;

(

k) the total cost of borrowing and the APR for the payday loan;

(

l) a statement that interest applies only to the principal of the payday loan;

(

m) the rate of interest that applies to the principal of the payday loan, together with a statement of the total amount of interest that is payable under the loan;

(

n) each of the other charges that apply, together with a statement of the amount of each of those charges;

(

o) the date on which each payment is due to the payday lender and the amount of each of those payments;

(

p) a statement that the payday loan is a " high cost

loan";

(

q) a statement that the supply of goods or services is separate and optional from the payday loan;

(

r) a statement of the borrower's rights of cancellation under

section 83.5, setting out how those rights can be exercised and identifying the time by which the borrower can exercise them;

(

s) a statement of the remedies available to the borrower under

section 83.10;

(

t) where a cash card is to be issued to the borrower, a statement identifying that third party service charges may apply for the use of the card;

(

u) the agreement number of the payday loan; and

(

v) another term, information or statement that may be prescribed by the regulations.

(3) Before the borrower signs the loan agreement, the payday lender shall

(

a) review with the borrower the matters described in paragraphs (2)(k), (

q) and (r); and

(

b) require that the borrower initial each of those matters in the agreement.

(4) A payday lender shall give a borrower a copy of the agreement at the time it is signed and dated by the borrower, together with a copy of the cancellation notice that may be used by the borrower for the purpose of

section 83.5.

(5) A payday lender shall ensure that the proceeds of the payday loan are delivered to the borrower no later than at the time of entering into the agreement.

(6) In the case of a payday loan obtained by means of the internet or by telephone, the payday lender is considered to have complied with subsection (5) where the payday lender delivers instructions to the payday lender's financial services provider to transfer the amount of the advance to the borrower on the same day as the day on which the agreement is entered into by both the borrower and the payday lender.

(7) For the purpose of subsection (6), "financial services provider" includes a bank listed in

Schedule I, II or III of the Bank Act

( Canada

), a credit union, a trust corporation or loan corporation registered under the Trust and Loan Corporations Act

or an organization that provides remote funds transfers, electronic funds transfers or a similar method of transferring money.

2016 c46 s3

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Receipt for payment

83.7

A payday lender shall give a receipt to a borrower in the form approved by the minister immediately upon receipt of payment.

2016 c46 s3

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Payout of balance on cash card

83.8

(1)Where the payday lender issues a cash card to the borrower in respect of a payday loan, the borrower is entitled to be paid in cash the amount of credit remaining on the card where

(

a) the balance of credit remaining on the cash card is less than the amount prescribed by the regulations; or

(

b) the payday loan has been repaid by the borrower and the cash card has expired.

(2) Where the borrower is entitled to be paid a balance under subsection (1) and returns the cash card to the payday lender, the payday lender shall immediately pay the balance on demand by the borrower.

(3) On return of a cash card under this section, the payday lender shall immediately give the borrower a receipt for the cash card in the form approved by the minister and the receipt shall specify the amount paid to the borrower.

(4) The balance of credit remaining on an expired cash card issued to a delinquent borrower may be applied by the payday lender as payment towards the payday loan, where prescribed by and in accordance with the regulations.

(5) In subsection (4), "delinquent borrower" means a borrower who fails to repay a payday loan by the end of the payday loan term under the loan agreement.

2016 c46 s3

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Prepayment

83.9

A borrower may prepay a full or partial amount before it is due under the payday loan agreement, without incurring a prepayment charge or penalty.

2016 c46 s3

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Consequence of failure to comply

83.10

(1)Where a payday lender fails to comply with a requirement of

section 83.3, 83.4, subsection 83.6(3), 83.6(4), 83.6(5),

section 83.7, 83.8 or 83.9 or the regulations made under paragraphs 83.11(a), (b), (f), (

g) or ( i

), the borrower is not liable to pay the payday lender an amount that exceeds the principal of the payday loan.

(2) The remedies under this

section are in addition to another remedy that may be available to the borrower under the common law or under another Part.

2016 c46 s3

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Regulations

83.11

(1)The Lieutenant-Governor in Council may make regulations for the purpose of this Part

(

a) prescribing the maximum total cost of borrowing;

(

b) specifying fees, penalties, rates, commissions or charges allowed to be charged by payday lenders for or in relation to a payday loan;

(

c) prescribing a term, information or statement to be included in a payday loan agreement and, where applicable, to be initialled by a borrower;

(

d) respecting payday loan agreements between borrowers and payday lenders that are not entered into in person;

(

e) regulating or prohibiting the offering, arrangement or provision of payday loans by means described in paragraph (d );

(

f) prohibiting certain practices with respect to payday loans or payday lenders;

(

g) prescribing an amount of credit remaining on a cash card for the purpose of

section 83.8;

(

h) respecting the expiry of cash cards and setting minimum terms;

( i

prescribing the information to be required for signs, notices, representations and advertisements;

(

j) defining a word for the purpose of this Part where that word is not defined in this Part; and

(

k) generally, to give effect to the purpose of this Part.

(2) Regulations made under this

section may be made with retroactive effect.

2016 c46 s3

PART VII.2

HIGH-COST CREDIT PRODUCTS

Definitions

83.12

In this Part

(a)

"advance" has the same meaning as in

Part VII;

(b)

"APR" has the same meaning as in

Part VII;

(c)

"borrower" means an individual who has entered into or who is negotiating to enter into a high-cost credit agreement for primarily a personal, family or household purpose, where that individual, under that high-cost credit agreement, receives or is to receive a high-cost credit product from a high-cost credit grantor;

(d)

"cash card" means a card or other device issued by a high-cost credit grantor to the borrower of a high-cost credit product instead of advancing cash or transferring money to the order of the borrower that can be used to obtain cash or acquire goods and services, but does not include a credit card;

(e)

"credit card" has the same meaning as in

Part VII;

(f)

"fixed credit" has the same meaning as in

Part VII;

(g)

"high-cost credit agreement" means a credit agreement under which credit is extended by way of a high-cost credit product, and includes an agreement to renew, amend or extend a high-cost credit agreement;

(h)

"high-cost credit grantor" means a person who offers, arranges, provides or facilitates high-cost credit products to or for consumers and includes a loan broker;

( i

"high-cost credit product" means

( i

a fixed credit product that has an APR that exceeds the APR prescribed by regulation and meets other criteria prescribed by regulation,

(ii)

an open credit product that has an annual interest rate that, calculated in accordance with the regulations, exceeds the annual interest rate prescribed by regulation and meets other criteria prescribed by regulation,

(iii)

a lease that has an APR that exceeds the APR prescribed by regulation and meets other criteria prescribed by regulation, or

(iv)

a product prescribed by regulation through which credit is extended by a high-cost credit grantor to a borrower primarily for a personal, family or household purpose,

but does not include a payday loan or a credit product prescribed by regulation;

(j)

"interest" means charges that accrue over time and are determined by applying a rate to the principal of a high-cost credit product from time to time under the high-cost credit agreement;

(k)

"loan broker" has the same meaning as in

Part VII; and

(l)

"open credit" has the same meaning as in

Part VII.

2022 c28 s18

Application

83.13

(1) This Part applies

(

a) to every high-cost credit grantor who offers, arranges

or provides a high-cost credit product to a borrower in the province, whether the high-cost credit grantor operates from business premises, by telephone or on the internet; and

(

b) to each high-cost credit product, regardless of the number of high-cost credit grantors involved in the high-cost credit product.

(2) This Part does not apply to a high-cost credit product provided before the coming into force of this Part, except to the extent that it relates to an extension or renewal of a high-cost credit product provided or granted after the coming into force of this Part.

(3) The Lieutenant-Governor in Council may by regulation exempt a high-cost credit grantor or class of high-cost credit grantors from some or all of

this Part.

2022 c28 s18

Limits on total cost of borrowing

83.14

(1) The Lieutenant-Governor in Council may, by regulation, set the amount, or establish a rate, formula

or method of determining the amount, respecting the maximum total cost of borrowing that may be charged by a high-cost credit grantor.

(2) The Lieutenant-Governor in Council may, in addition to subsection (1) and by regulation, determine a charge, fee, penalty, rate or commission that may be charged by a high-cost credit grantor.

(3) A high-cost credit grantor shall not charge, require

or accept from the borrower an amount that exceeds a maximum set or determined under subsection (1) or (2).

2022 c28 s18

Prohibited practices

83.15

(1) A high-cost credit grantor shall not

(

a) offer or promise to give, directly or indirectly, any prize or reward as an incentive to enter into, or for having entered into, a high-cost credit agreement;

(

b) state or imply that a high-cost credit product will improve the borrower's credit rating if it will not do

so;

(

c) require, request or accept an assignment of wages from a borrower;

(

d) collect or attempt to collect a payment before the date that payment is due under the high-cost credit agreement; or

(

e) engage in a prohibited practice prescribed in the regulations.

(2) An assignment of wages is not valid if it is given in consideration of a high-cost credit product or an advance under a high-cost credit product or to secure or facilitate a payment in relation to a high-cost credit product.

2022 c28 s18

Cancellation rights

83.16

(1) A borrower under a high-cost credit agreement may, without a reason, cancel the agreement at a time before the end of

(

a) the fourth day after the high-cost credit grantor gives a copy of the agreement to the borrower, if the high-cost credit grantor is open for business on that day; or

(

b) the next day that the high-cost credit grantor is open for business following the fourth day referred to in paragraph (a), if the high-cost credit grantor is not open for business on that fourth day.

(2) A borrower may cancel a high-cost credit agreement at any time if the high-cost credit grantor

(

a) does not advise the borrower of the borrower's cancellation rights under subsection (1 );

(

b) fails to satisfy any of the requirements in subsection 83.17(2), paragraph 83.17(4)(

a) and subsection 83.17(5); or

(

c) contravenes a provision of this Act or the regulations that is prescribed in the regulations.

(3) A borrower who wishes to cancel a high-cost credit agreement shall

(

a) give written notice to the high-cost credit grantor; and

(

b) return the full amount received by the borrower to the high-cost credit grantor.

(4) Where a borrower cancels a high-cost credit agreement under subsection (1), written notice referred to in paragraph (3)(

a) shall be given within the time period

set out in subsection (1).

(5) In giving notice of cancellation under subsection (3), a borrower may

(

a) use the copy of the cancellation notice provided by the high-cost credit grantor under

section 83.17; or

(

b) provide notice in writing, signed by the borrower, of the borrower's intention to cancel the high-cost credit agreement.

(6) On receiving notice of cancellation from a borrower under this section, the high-cost credit grantor shall give the borrower a receipt in the form approved by the minister acknowledging receipt of the high-cost credit agreement cancellation.

(7) A high-cost credit grantor shall not charge a fee for the cancellation of a high-cost credit agreement.

(8) Cancellation of a high-cost credit product under this

section extinguishes every liability and obligation under or related to the high-cost