Disclosure regarding increases in outstanding principal
34(1)Within 30 days after an increase in the outstanding principal under a scheduled-payments credit agreement, the credit grantor shall deliver to the borrower a notice in writing where
(a)
the outstanding principal increases because 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 increase in the outstanding principal, the total amount of the payments that the borrower is scheduled to make over a payment period will not cover the interest that accrues during the payment period.
34(2)A notice referred to in subsection (1) shall specify
(a)
that the outstanding principal has increased and why the outstanding principal has increased,
(b)
that, because of the increase in the outstanding principal, the subsequent scheduled payments will not cover the interest that will accrue in each payment period, and
(c)
what the outstanding balance will be at the end of the term if the amount of subsequent scheduled payments is not adjusted.
Disclosure regarding increases in outstanding principal
34(1)Within 30 days after an increase in the outstanding principal under a scheduled-payments credit agreement, the credit grantor shall deliver to the borrower a notice in writing where
(a)
the outstanding principal increases because 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 increase in the outstanding principal, the total amount of the payments that the borrower is scheduled to make over a payment period will not cover the interest that accrues during the payment period.
34(2)A notice referred to in subsection (1) shall specify
(a)
that the outstanding principal has increased and why the outstanding principal has increased,
(b)
that, because of the increase in the outstanding principal, the subsequent scheduled payments will not cover the interest that will accrue in each payment period, and
(c)
what the outstanding balance will be at the end of the term if the amount of subsequent scheduled payments is not adjusted.