1972 Bill 76 First Session, 17th Legislature, 21 Elizabeth II THE LEGISLATIVE ASSEMBLY OF ALBERTA BILL 76 The Credit and Loan Agreements Amendment Act, 1972 MR. KOZIAK First Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Second Reading ............................. . Third Reading .............................. . = Printed by L. S. Wall, Queen's Printer, Edmonton

BILL 76 1972 THE CREDIT AND LOAN AGREEMENTS AMENDMENT ACT, 1972 (Assented to , 1972) HEll l\1:A,JESTY, by and with the adv:ioe and consent of the Legis1'ative Asse1m!bly of Alberta, enacts as follows: 1. The Oredit and Loan Agreements Act is hereby amended.

Section 8 is amended by adding after subsection (1) the. following subsection:

(1.1) A seller shall furnish to the buyer on request a statement showing the net amount, and the calculation thereof, required to effect the prepayment in full of a time sale agreement between the seller and the buyer. 3. The following

section is added aft,er

section 8: 8.1

(1) A credit grantor who has extended credit in a transaction to which

section 5 applies shall not exact, or attempt to exact, from the buyer credit charges in excess of the amount permitted by this Act or by the Interest Act (Canada).

(2) Where a tin1e sales agreement specifies the credit charge or the additional charge to be made in the event of default or both as annual percentage rates, no credit grantor shall exact or attempt to exact and no buyer shall be re­ quired to pay any greater amount than the charges calcu­ lated on the basis of the rates so specified.

(3) Where there is a variation in any time sales agree­ ment between the credit charge or the additional charge to be made in the event of default expressed as an annual per­ centage rate and expressed as a money charge, no credit grantor shall exact or attempt to exa'ct and no buyer shall be required to pay any greater amount than the lesser of the charges so expressed.

(4) Where a credit grantor who has extended credit in a transaction to which

section 5 applies receives from the

Expla natory Notes I. This Bill will amend

chapter 73 of the Revised Statutes of A~berta 1970. 2. Sellers will be required to provide prepayment statements on request. 3. Restrictions, on credit charges. The recovery of excessive charges will be prohibited and will be subject to the penalty pro­ vision of the Act. A civil right of recovery will also be specified.

buyer payment O'f any credit charges in excess of the amO'unts permitted by this Act, the bO'rrO'wer may recover from the credit grantor the amount of such excess.

Section 14 is alnended by adding after subsection (1) the following subsection: ( 1.1 ) A lender shall furnish to' the bO'rrO'wer O'n request a statement shO'wing the net amO'unt, and the calculation thereO'f, required to' effect the prepayment in full of a loan agreement between the lender and the bO'rrO'wer. 5. The following

section is added after

section 14: 14.1

(1) A credit grantO'r whO' has extended credit in a transaction to' which sectiO'n 11 applies shall nO't exact, or attempt to' exact, frO'm the bO'rrO'wer credit charges in ex­ cess Qf the amO'unt permitted by this Act Qr by the Interest Act (Canada).

(2) Where a IO'an agreement specifies the credit charge Qr the additiO'nal charge to' be made in the event Qf default Qr bO'th as annual percentage rates, nO' Icredit grantor shall exact O'r attempt to' exact and nO' bQrrO'wer shall be required to' pay any greater amO'unt than the charges calculated on the basis O'f the rates sO' specified.

(3) Where there is a variatiO'n in any IO'an agreement between the credit charge O'r the additiO'nal charge to be made in the event Qf default expressed as an annual percent­ age rate and expressed as a mQney charge, nO' credit grant­ O'r shall exact O'r attempt to' exact and nO' buyer shall be re­ quired to' pay any greater amO'unt than the lesser of the charges sO' expressed.

(4) Where a credit grantO'r whO' has extended credit in a transactiO'n to' which sectiO'n 11 applies receives from the bO'rrQwer payment O'f any credit charges in excess of the amounts permitted by this Act, the bO'rrO'wer may recover frQm the credit grantO'r the amO'unt O'f such excess. 6.

Part 3 is renumbered as

Part 5 and the following Parts are added after

section 15: 2 15.1 In this Part,

PART 3 CREDIT CARDS (a) "credit card" means a card dO'cum'ent O'r similar instrument by means O'f which gO'O'ds O'r services may be O'btained O'n a deferred payment basis or by means O'f which cash may be O'btained;

4. Lenders will be required to provide prepayment statements on request. 5. -Restrictions on credit charges. The recovery of excessive charges will be prohibited and will be subject to the penalty pro­ vision of the Act. A civil right of recovery will also be specified. 6. New provisions will be added dealing with unsolicited credit cards and also with disclosure in credit advertising. 2

(b) "unsolicited credit card" m'eans a credit card which has not been requested in writing by the person whose name appears thereon but does not include a credit card replacing or renewing a credit card previously used by the person. 15.2

(1) No person shall issue an unsolicited credit card to another person.

(2) Where an unsolicited credit card is received, the re­ cipient has no legal obligation to the person issuing the card in respect thereto or for any transaction made thereby unless and until the recipient advises the issuer in writing of his acceptance of the card. -

(3) Where an unsolicited credit card has not been accep­ ted by the recipient in the manner set out in subsection (2), no action lies in the event of loss or misuse of the card or for the value of goods, services or cash obtained by the use of the card.

(4) This

section does not apply to an unsolicited credit card in the possession of the person whose name appears thereon prior to July 1, 1972.

PART 4 ADVERTISING 15.3 In this Part, "advertisement" includes (

a) any price tag, ticket or notice attached to goods or displayed publicly, (b) (

c) any advertisement in a newspaper, magazine or other publication that circulates in Alberta, and any message broadcast by television or radio that can reasonably be expect'ed to be received by per- sons in Alberta. 15.4 Where a credit grantor advertises or causes to be advertised information respecting his credit charges, the ad vertisement (

a) shall state only that he makes a credit plan avail­ able at his usual rates, or (

b) shall state (

i) the full credit charges as an annual percentage rate expressed in the manner required by sec­ tion 5 or 11 and by the regulations, (Ii) the sum to be actually received in cash by the borrower or the actual cash price of the goods, (iii) the amount of the down payment, if any, to be . made on the purchase price of the goods, (IV) the amount of each installment and , 3

(

v) the number of installments required to pay the total indebtedness including the cost of borrow­ ing.

Section 23 is amended by adding the following clause after clause (c): 4 (

d) the manner and content of advertising by credit grantors of the cost of borrowing and other costs of credit, 8. This Act comes into force on July 1, 1972.

Section 23 reads: 23. The Lieutenant Governor in Council may make regulations not inconsisten.t with this Act to facilitate the carrying out of the intent and purpose of this Act and without re,strLcting the generaJIHy of the f.oregoing may make regulations prescribing (

a) the manner in which the annual percentage rate shall be ex­ pressed, calculated and applied, (

b) the forms in which the particulars required to be given in time sale agreements and loan agreements shall be set out, and (

c) the manner in which credit charges shall ,be apportioned under

section 8 and

section 14, and defining any words used in this Act and not defined herein. Title: 1972 (17th, 1st) Bill 76, The Credit and Loan Agreements Amendment Act, 1972