SUMMARY

The purpose of this enactment is to limit interest rates on credit card accounts. Thus, credit cards issued by a petroleum company or a retail store could not carry interest at a rate exceeding by more than 9.5% or 11.5% respectively the Bank of Canada discount rate. Those issued by a financial institution could not carry interest at a rate exceeding by more than 6.5% or 8.5% the Bank of Canada discount rate, depending on whether or not such institution charges entry fees, renewal fees or user fees.

Another purpose of this enactment is to provide for a grace period for partial payments in relation to a credit card account. Thus, the part of a purchase that is paid on the due date is treated as a delayed cash payment while only the remaining balance bears interest. The card holder has a grace period from the date of purchase to the date of partial payment.