Bill C-8
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Borrowing Costs |
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Definition of
``cost of
borrowing''
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385.14 For the purposes of this section and
sections 385.15 to 385.24, ``cost of
borrowing'' means, in respect of a loan made
by a retail association,
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For those purposes, however, ``cost of
borrowing'' does not include any charge
prescribed to be excluded from the cost of
borrowing.
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Rebate of
borrowing
costs
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385.15 (1) If a retail association makes a
loan in respect of which the disclosure
requirements of section 385.16 apply and the
loan is not secured by a mortgage on real
property and is required to be repaid either on
a fixed future date or by instalments, the
association shall, if there is a prepayment of
the loan, rebate to the borrower a portion of the
charges included in the cost of borrowing in
respect of the loan.
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Exception
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(2) The charges to be rebated do not include
the interest or discount applicable to the loan.
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Regulations
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(3) The Governor in Council may make
regulations governing the rebate of charges
under subsection (1). The rebate shall be made
in accordance with those regulations.
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Disclosing
borrowing
costs
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385.16 (1) A retail association shall not
make a loan to a natural person that is
repayable in Canada unless the cost of
borrowing, as calculated and expressed in
accordance with section 385.17, and other
prescribed information have in the prescribed
manner and at the prescribed time been
disclosed by the association to the borrower.
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Non-applicati
on
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(2) Subsection (1) does not apply in respect
of a loan that is of a prescribed class of loans.
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Calculating
borrowing
costs
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385.17 The cost of borrowing shall be
calculated, in the prescribed manner, on the
basis that all obligations of the borrower are
duly fulfilled and shall be expressed as a rate
per annum and, in prescribed circumstances,
as an amount in dollars and cents.
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Additional
disclosure
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385.18 (1) If a retail association makes a
loan in respect of which the disclosure
requirements of section 385.16 are applicable
and the loan is required to be repaid either on
a fixed future date or by instalments, the
association shall disclose to the borrower, in
accordance with the regulations,
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Disclosure in
credit card
applications
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(2) A retail association shall, in accordance
with the regulations, at such time and in such
manner as may be prescribed, provide
prescribed information in any application
forms or related documents that it prepares for
the issuance of credit, payment or charge cards
and provide prescribed information to any
person applying to it for a credit, payment or
charge card.
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Disclosure re
credit cards
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(3) If a retail association issues or has issued
a credit, payment or charge card to a natural
person, the association shall, in addition to
disclosing the costs of borrowing in respect of
any loan obtained through the use of the card,
disclose to the person, in accordance with the
regulations,
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Additional
disclosure re
other loans
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(4) If a retail association enters into or has
entered into an arrangement, including a line
of credit, for the making of a loan in respect of
which the disclosure requirements of section
385.16 apply and the loan is not a loan in
respect of which subsection (1) or (3) applies,
the association shall, in addition to disclosing
the costs of borrowing, disclose to the person
to whom the loan is made, in accordance with
the regulations,
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Renewal
statement
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385.19 If a retail association makes a loan
in respect of which the disclosure
requirements of section 385.16 apply and the
loan is secured by a mortgage on real property,
the association shall disclose to the borrower,
at such time and in such manner as may be
prescribed, such information as may be
prescribed respecting the renewal of the loan.
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Disclosure in
advertising
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385.2 No person shall authorize the
publication, issue or appearance of any
advertisement in Canada relating to
arrangements referred to in subsection
385.18(4), loans, credit cards, payment cards
or charge cards, offered to natural persons by
a retail association, and purporting to disclose
prescribed information about the cost of
borrowing or about any other matter unless the
advertisement contains such information as
may be required by the regulations, in such
form and manner as may be prescribed.
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Regulations re
borrowing
costs
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385.21 The Governor in Council may make
regulations
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Complaints |
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Procedures
for dealing
with
complaints
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385.22 (1) A retail association shall
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Procedures to
be filed with
Commission- er
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(2) A retail association shall file with the
Commissioner a copy of its procedures
established under paragraph (1)(a).
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Obligation to
be member
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385.23 In any province, if there is no law of
the province that makes a retail association
subject to the jurisdiction of an organization
that deals with complaints made by persons
having requested or received products or
services in the province from a retail
association, the retail association shall be a
member of an organization that is not
controlled by it and that deals with those
complaints that have not been resolved to the
satisfaction of the persons under procedures
established by retail associations under
paragraph 385.22(1)(a).
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Information
on contacting
Agency
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385.24 (1) A retail association shall, in the
prescribed manner, provide a person
requesting or receiving a product or service
from it with prescribed information on how to
contact the Agency if the person has a
complaint about a deposit account, an
arrangement referred to in subsection
385.18(4), a payment, credit or charge card,
the disclosure of or manner of calculating the
cost of borrowing in respect of a loan or about
any other obligation of the retail association
under a consumer provision.
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Report
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(2) The Commissioner shall prepare a
report, to be included in the report referred to
in section 34 of the Financial Consumer
Agency of Canada Act, respecting
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Miscellaneous |
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Prepayment
protected
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385.25 (1) A retail association shall not
make a loan to a natural person that is
repayable in Canada, the terms of which
prohibit prepayment of the money advanced
or any instalment thereon before its due date.
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Minimum
balance
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(2) Except by express agreement between
the retail association and the borrower, the
making in Canada of a loan or advance by a
retail association to a borrower shall not be
subject to a condition that the borrower
maintain a minimum credit balance with the
association.
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Non-applicati
on of
subsection (1)
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(3) Subsection (1) does not apply in respect
of a loan that is
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Government
cheques
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(4) A retail association shall not make a
charge
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Deposits of
Government
of Canada
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(5) Nothing in subsection (4) precludes any
arrangement between the Government of
Canada and a retail association concerning
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Regulations re
customer
information
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385.26 The Governor in Council may make
regulations
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Notice of
branch
closure
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385.27 (1) Subject to regulations made
under subsection (5), a member association
with a branch in Canada at which it, through
a natural person, opens retail deposit accounts
and disburses cash to customers, shall give
notice in accordance with those regulations
before closing that branch or having it cease to
carry on either of those activities.
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Pre-closure
meeting
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(2) After notice is given but before the
branch is closed or ceases to carry on the
activities, the Commissioner may, in
prescribed situations, require the member
association to convene and hold a meeting
between representatives of the member
association, representatives of the Agency and
interested parties in the vicinity of the branch
in order to exchange views about the closing
or cessation of activities.
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