Acts and Regulations

C-28.3 - Cost of Credit Disclosure and Payday Loans Act

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Current to 1 January 2024
CHAPTER C-28.3
Cost of Credit Disclosure and Payday Loans Act
2008, c.3, s.1
Assented to June 7, 2002
Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:
I
INTERPRETATION AND APPLICATION
Definitions
1(1)In this Act
“advance” means value received, within the meaning of subsection (3), by the borrower or lessee; (avance)
“APR” means the annual percentage rate calculated in accordance with the regulations; (TAP)
“borrower” means an individual who has entered into, or who is negotiating to enter into, a credit agreement under which the individual receives or is to receive credit from a credit grantor, and includes(emprunteur)
(a) a credit card holder, and
(b) for the purposes of subsections (3), (4) and (5), except paragraphs (3)(b) and (h), a lessee,
but does not include a guarantor;
“brokerage fee” means an amount that a borrower pays or agrees to pay to a credit broker for the credit broker’s services in arranging, negotiating or facilitating or attempting to arrange, negotiate or facilitate an extension of credit to the borrower, and includes an amount that is(frais de courtage)
(a) deducted from the value received or to be received by a borrower in connection with a credit agreement, and
(b) paid to the credit broker by the credit grantor;
“business day” means a day on which a credit grantor is open for business; (jour ouvrable)
“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; (consommateur payant comptant)
“cash price” , in relation to a product, means(prix au comptant)
(a) for a sale to a borrower by a credit grantor, or by an associate of the credit grantor, who sells the product to cash customers in the ordinary course of business,
(i) an amount that fairly represents the price at which the credit grantor, or the associate of the credit grantor, sells the product to cash customers, or
(ii) if the credit grantor, or the associate of the credit grantor, and the borrower agree on a lower price, that lower price,
(b) for a sale to which paragraph (a) does not apply, the price agreed on by the credit grantor, or by the associate of the credit grantor, and the borrower, or
(c) for an advertisement published by or on behalf of a credit grantor, the price at which the product is currently offered by the credit grantor, or by an associate of the credit grantor, to cash customers or, if the credit grantor, or an 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 taxes and any other charges payable by a cash customer;
“cash value” , in relation to leased goods, means(valeur au comptant)
(a) if the lessor sells like goods to cash customers in the ordinary course of business,
(i) a value that fairly represents the price at which the lessor sells the like goods to cash customers, or
(ii) if the lessor and lessee agree on a lower value, that value, or
(b) if the lessor does not sell like goods to cash customers in the ordinary course of business,
(i) the lessor’s reasonable estimate of the price at which cash customers would buy the leased goods, or
(ii) if the lessor and lessee agree on a lower value, that value;
“Commission” means the Financial and Consumer Services Commission continued under the Financial and Consumer Services Commission Act;(Commission)
“common-law partner” , with respect to a particular time, means a person who cohabits in a conjugal relationship with another person at that time and who has so cohabited with that person for a continuous period of at least 2 years; (conjoint de fait)
“compliance officer” means a person appointed as a compliance officer under section 51.12;(agent de conformité)
“Court” means The Court of King’s Bench of New Brunswick; (Cour)
“credit agreement” means an agreement under which credit is extended and includes(convention de crédit)
(a) an agreement in relation to
(i) a loan of money,
(ii) a credit sale,
(iii) a line of credit, or
(iv) a credit card,
(b) a renewal of or an amendment to an agreement referred to in paragraph (a), and
(c) for the purposes of subsections (3), (4) and (5), except paragraph (3)(h), a lease;
“credit broker” means a person who, for compensation, arranges, negotiates or facilitates or attempts to arrange, negotiate or facilitate an extension of credit from a credit grantor to a borrower; (courtier en crédit)
“credit card” means a card or other device that can be used to obtain advances under a credit agreement for open credit; (carte de crédit)
“credit card holder” means an individual who is a borrower in relation to a credit card; (titulaire d’une carte de crédit)
“credit card issuer” means a person who is a credit grantor in relation to a credit card; (émetteur d’une carte de crédit)
“credit grantor” means(prêteur)
(a) a person who has entered into, or who is negotiating to enter into, a credit agreement under which the person extends or is to extend credit to a borrower if
(i) the borrower has entered into or is to enter into the credit agreement primarily for the personal, family or household purposes of the borrower,
(ii) the credit is not in respect of the sale of goods intended for resale, and
(iii) except in the case of a credit agreement in relation to a payday loan, the credit is for $100 or more, or
(b) an assignee of the original credit grantor’s rights under a credit agreement, if the borrower has been given notice of the assignment, and
includes
(c) a credit card issuer, and
(d) for the purposes of subsections (3), (4) and (5), except paragraphs (3)(b) and (g), a lessor;
“credit sale” means the sale of a product in which the purchase of the product is financed by the seller or manufacturer of the product or by an associate of the seller or manufacturer of the product, but does not include such a sale if(vente à crédit)
(a) the credit agreement in relation to the sale requires that the full amount of the sale price of the product be paid in a single payment within a specified period after a written invoice or statement of account is delivered to the buyer,
(b) the sale is unconditionally interest-free during the period referred to in paragraph (a),
(c) the sale is unsecured, apart from any lien on the product that may arise by operation of law,
(d) the sale is not assigned in the ordinary course of the credit grantor’s business otherwise than as security, and
(e) the sale does not provide for any non-interest finance charges;
“default charge” means a charge imposed on a borrower or lessee who fails to make a payment as it comes due under a credit agreement or lease or who fails to comply with any other obligation under a credit agreement or lease, but does not include interest on an overdue payment; (frais de défaut de paiement)
“Director” means the Director of Consumer Affairs appointed under the Financial and Consumer Services Commission Act and includes any person designated by the Commission or the Director to act on the Director’s behalf; (directeur)
“fixed credit” means credit extended under a credit agreement that is not for open credit; (crédit fixe)
“floating rate” means an interest rate that bears a specified mathematical relationship to an index rate, and includes an interest rate that(taux variable)
(a) is subject to a minimum or maximum, or
(b) is determined at the beginning of a period and applies throughout the period, regardless of changes in the index rate during the period;
“grace period” means a period during which interest accrues but will be forgiven if the borrower satisfies conditions specified in the credit agreement; (délai de grâce)
“high-ratio mortgage” means high-ratio mortgage as defined in the regulations; (prêt hypothécaire à proportion élevée)
“index rate” means a rate that, in accordance with the terms of a credit agreement, is made available to a borrower, at least weekly,(taux indiciel)
(a) in a written publication that has general circulation in New Brunswick, or
(b) in some other manner that can reasonably be expected to make the rate available to the borrower;
“initial disclosure statement” means, in relation to a credit agreement or lease, the disclosure statement for that credit agreement or lease that is required to be delivered to the borrower or lessee under section 16; (document d’information initial)
“interest” means a charge that accrues over time and is determined by applying a rate to an amount owing under a credit agreement or lease; (intérêt)
“interest-free period” means a period following the making of an advance during which interest does not accrue on the advance; (période sans intérêt)
“Internet payday loan” means an Internet payday loan as defined in section 37.1;(prêt sur salaire par Internet)
“investigator” means a person appointed as an investigator under section 51.31;(enquêteur)
“lease” means an agreement for the hire of goods if the agreement(bail)
(a) is for a fixed term of 4 months or more,
(b) is for an indefinite term or is renewed automatically until one of the parties takes positive steps to terminate it, or
(c) is a residual obligation lease as defined in section 47, and
includes an amendment to such an agreement, but does not include an agreement or an amendment to an agreement for the hire of goods in connection with a residential tenancy agreement;
“lessee” means an individual who has entered into, or who is negotiating to enter into, a lease under which the individual hires or is to hire goods from a lessor; (preneur à bail)
“lessor” means(bailleur)
(a) a person who has entered into, or who is negotiating to enter into, a lease under which the person leases or is to lease goods to a lessee if the lessee has entered into or is to enter into the lease primarily for the personal, family or household purposes of the lessee, or
(b) an assignee of the original lessor’s rights under a lease, if the lessee has been given notice of the assignment;
“Minister” means the Minister of Finance and Treasury Board and includes any person designated by the Minister to act on the Minister’s behalf.(Ministre)
“mortgage loan” means mortgage loan as defined in the regulations; (prêt hypothécaire)
“non-interest finance charge” means any charge that a borrower is required to pay in connection with a credit agreement, other than(frais financiers autres que l’intérêt)
(a) interest,
(b) a prepayment charge,
(c) a default charge,
(d) a charge for an optional service,
(e) an expense, charge or fee referred to in paragraph (3)(f), (g) or (h) or in regulations under paragraph (3)(i), or
(f) in the case of a credit sale, any charge that would also be payable by a cash customer;
“open credit” means credit extended under a credit agreement if the credit agreement(crédit à découvert)
(a) anticipates multiple advances that are to be made when requested by the borrower in accordance with the credit agreement, and
(b) does not establish the total amount to be advanced to the borrower under the credit agreement, although it may impose a credit limit;
“optional service” means a service that is offered to a borrower or lessee in connection with a credit agreement or lease and that the borrower or lessee does not have to accept in order to enter into the credit agreement or lease; (service facultatif)
“outstanding balance” means the total amount owing at any particular time under a credit agreement; (solde impayé)
“payday loan” means a payday loan as defined in section 37.1;(prêt sur salaire)
“payment” means value given, within the meaning of subsection (5), by the borrower or lessee; (versement)
“payment period” means one of the intervals into which the term of a credit agreement or lease is divided for the purpose of determining the amount of and timing of payments; (période de paiement)
“periodic payment” means the payment that, under a credit agreement or lease, is to be made in respect of each payment period; (versement périodique)
“product” means goods or services, but does not include the extension of credit; (produit)
“publish” means make public in any manner, including by or through any media; (publier)
“Registrar” Repealed: 2017, c.48, s.4
“regulated activity” means any activity governed by this Act or the regulations;(activité réglementée)
“regulation” means a regulation made under this Act and, unless the context otherwise indicates, includes a rule as defined in section 37.1;(règlement)
“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, which schedule of payments may be subject to adjustment to accommodate contingencies, including changes in the interest rate; (convention de crédit à remboursement à échéances fixes)
“security interest” means any interest in property that secures the borrower’s obligations under a credit agreement; (sûreté)
“term” means,(durée)
(a) in relation to the duration of a credit agreement, the period between the first advance and the last payment anticipated by the credit agreement, or
(b) in relation to the duration of a lease, the period during which the lessee is entitled to retain possession of the leased goods;
“total cost of credit” means the amount determined by calculating, subject to the conditions and assumptions contained in the regulations, the difference between(coût total du crédit)
(a) the value given or to be given, within the meaning of subsection (5), by the borrower in connection with a credit agreement, and
(b) the value received or to be received, within the meaning of subsection (3), by the borrower in connection with a credit agreement,
disregarding the possibility of prepayment or default;
“Tribunal” means the Tribunal as defined in the Financial and Consumer Services Commission Act.(Tribunal)
Associates
1(2)For the purposes of this Act and the regulations, two persons are associates of each other if
(a) one of them is the spouse, common-law partner, parent, child, sibling or business partner of the other person, or
(b) one of them is a body corporate and a sufficient number of shares to elect a majority of the body corporate’s directors are beneficially owned, directly or indirectly, by
(i) the other person,
(ii) one or more associates of the other person, or
(iii) the other person and one or more associates of the other person.
Value received and value given
1(3)Subject to subsection (4), the following constitute value received or to be received by a borrower in connection with a credit agreement:
(a) money transferred or to be transferred by the credit grantor to the borrower or to the order of the borrower;
(b) in the case of a credit agreement other than a lease, the cash price of a product purchased or to be purchased by the borrower from the credit grantor or an associate of the credit grantor;
(c) in the case of a lease, the cash value of goods leased or to be leased by the lessee from the lessor;
(d) the amount of a pre-existing monetary obligation of the borrower that is paid, discharged or consolidated or is to be paid, discharged or consolidated by the credit grantor;
(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;
(f) charges for any of the following expenses, if the credit grantor has incurred or is to incur the expense for the purpose of arranging, documenting, insuring or securing the credit agreement and then charges the expense to the borrower:
(i) fees paid 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 interests in real or personal property;
(ii) fees for professional services required for the purpose of confirming the value, condition, location or conformity to law of property that serves as security for the credit agreement, if the borrower is given a report signed by the person providing the professional services and may give the report to third persons;
(iii) premiums for insurance that protects the credit grantor against the borrower’s default on a high-ratio mortgage;
(iv) premiums for, in the case of a credit agreement other than a lease, 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;
(v) premiums for, in the case of a lease, casualty insurance on leased goods, if the lessee is a beneficiary of the insurance and the insured amount is the full insurable value of the leased goods;
(vi) premiums for any insurance provided or paid for by the credit grantor in connection with the credit agreement if the insurance is optional; and
(vii) application fees for insurance referred to in subparagraph (iii);
(g) fees for services provided or to be provided by the credit grantor to maintain a tax account on a high-ratio mortgage;
(h) charges for shares in a credit union that a borrower must buy as a condition of entering into a credit agreement with the credit union; and
(i) any other thing prescribed by regulation.
Value received and value given
1(4)The following do not constitute value received or to be received by a borrower in connection with a credit agreement unless they relate to an optional service, to an expense, charge or fee referred to in paragraph (3)(f), (g) or (h), or to a thing prescribed for the purposes of paragraph (3)(i):
(a) insurance provided or paid for or to be provided or paid for by the credit grantor in connection with the credit agreement;
(b) 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; and
(c) any other thing prescribed by regulation.
Value received and value given
1(5)The following constitute value given or to be given by a borrower in connection with a credit agreement:
(a) money or property transferred or to be transferred from the borrower to the credit grantor for any purpose in connection with the credit agreement;
(b) money or property transferred or to be transferred from the borrower to a person other than the credit grantor in respect of a charge for services that the credit grantor requires the borrower to obtain or pay for in connection with the credit agreement, unless the charge
(i) is for an expense to which paragraph (3)(f) or regulations under paragraph (3)(i) would have applied if the expense had been incurred initially by the credit grantor and then charged by the credit grantor to the borrower,
(ii) is for services provided by a lawyer chosen by the borrower, or
(iii) is for title insurance provided by an insurer chosen by the borrower; and
(c) any other thing prescribed by regulation.
Value received and value given
1(6)Notwithstanding subsections (3) and (5), amounts paid into or out of a tax account for a mortgage loan are not included when calculating the APR and total cost of credit.
2006, c.16, s.47; 2008, c.3, s.1; 2012, c.39, s.56; 2013, c.31, s.11; 2014, c.31, s.1; 2016, c.37, s.40; 2016, c.40, s.1; 2016, c.40, s.2; 2017, c.48, s.4; 2019, c.12, s.6; 2019, c.29, s.36; 2023, c.6, s.8; 2023, c.17, s.47
Statement of purpose for entering into credit agreement or lease
2A person may rely on a statement made by an individual in a credit agreement, lease or other document regarding the purpose for which the individual has entered into or is to enter into a credit agreement or lease if
(a) the statement is signed by the individual, and
(b) the person believes in good faith that the statement is true.
Application of Parts III to VII
3(1)A duty, in respect of a credit agreement, imposed on a credit grantor under Part III, V or VI or a right, benefit or protection, in respect of a credit agreement, granted to a borrower or credit grantor under Part III, V or VI applies in respect of any credit agreement entered into or to be entered into by the credit grantor in the ordinary course of carrying on a business on or after the commencement of this Act.
3(2)A duty, in respect of a credit agreement, imposed on a credit grantor or credit broker under Part IV applies in respect of any credit agreement that is entered into or to be entered into by the credit grantor on or after the commencement of this Act and that is arranged by a credit broker.
3(3)A duty, in respect of a lease, imposed on a lessor under Part III or VII or a right, benefit or protection, in respect of a lease, granted to a lessee or lessor under Part III or VII applies in respect of any lease entered into or to be entered into by the lessor in the ordinary course of carrying on a business on or after the commencement of this Act.
Waiver of rights under this Act or the regulations
4Any waiver or release by a person of the person’s rights, benefits or protections under this Act or the regulations is void except to the extent that the waiver or release is expressly permitted by this Act or the regulations.
Other remedies not precluded
5Any remedy under this Act is in addition to and does not derogate from any other legal, equitable or statutory remedy.
II
REGISTRATION
Non-application of Part
2008, c.3, s.1
5.1This Part does not apply in respect of credit agreements in relation to payday loans.
2008, c.3, s.1
Mandatory registration
6(1)No credit grantor shall act as such in the ordinary course of carrying on a business unless the credit grantor is registered under this Part or is exempted from the application of this Part by regulation.
6(2)No lessor shall act as such in the ordinary course of carrying on a business unless the lessor is registered under this Part or is exempted from the application of this Part by regulation.
6(3)No credit broker shall act as such in the ordinary course of carrying on a business unless the credit broker is registered under this Part or is exempted from the application of this Part by regulation.
6(4)No person shall publish or cause to be published any statement or representation that the person is registered under this Part.
Application for registration
7(1)The Director may register under this Part a credit grantor, lessor or credit broker who submits an application for registration and who meets the requirements for registration under this Part and the regulations.
7(2)An application for registration shall be made to the Director on a form provided by the Director and shall be accompanied by
(a) in the case of a credit grantor, copies of all documents used by the credit grantor in relation to the extension of credit,
(b) in the case of a lessor, copies of all documents used by the lessor in relation to the leasing of goods,
(c) in the case of a credit broker, copies of all documents used by the credit broker in relation to arranging, negotiating or facilitating or attempting to arrange, negotiate or facilitate an extension of credit,
(d) any other information or document that the Director may require or that is prescribed by regulation, and
(e) the fee prescribed by regulation.
7(3)The Director may refuse to register under this Part a credit grantor, lessor or credit broker who fails to meet the requirements for registration under this Part and the regulations.
2013, c.31, s.11
Effect of withdrawal, suspension or cancellation of registration
8(1)The registration of a credit grantor remains in effect for the period of time prescribed by regulation unless the registration is withdrawn by the credit grantor, or is suspended or cancelled by the Director, in which case, at the time of the withdrawal, suspension or cancellation, the registration ceases to have effect and the credit grantor ceases to be registered under this Part.
8(2)Notwithstanding subsection (1), a credit grantor whose registration has been withdrawn, suspended or cancelled may, if the credit grantor does not extend any new credit, continue to collect accounts receivable owing to the credit grantor at the time of the withdrawal, suspension or cancellation and, for that purpose, may renew credit agreements and otherwise deal with credit transactions originating before the withdrawal, suspension or cancellation.
8(3)The registration of a lessor remains in effect for the period of time prescribed by regulation unless the registration is withdrawn by the lessor, or is suspended or cancelled by the Director, in which case, at the time of the withdrawal, suspension or cancellation, the registration ceases to have effect and the lessor ceases to be registered under this Part.
8(4)Notwithstanding subsection (3), a lessor whose registration has been withdrawn, suspended or cancelled may, if the lessor does not enter into any new leases, continue to collect accounts receivable owing to the lessor at the time of the withdrawal, suspension or cancellation and, for that purpose, may renew leases and otherwise deal with lease transactions originating before the withdrawal, suspension or cancellation.
8(5)The registration of a credit broker remains in effect for the period of time prescribed by regulation unless the registration is withdrawn by the credit broker, or is suspended or cancelled by the Director, in which case, at the time of the withdrawal, suspension or cancellation, the registration ceases to have effect and the credit broker ceases to be registered under this Part.
8(6)Notwithstanding subsection (5), a credit broker whose registration has been withdrawn, suspended or cancelled may, if the credit broker does not arrange, negotiate or facilitate or attempt to arrange, negotiate or facilitate an extension of new credit, collect accounts receivable owing to the credit broker at the time of the withdrawal, suspension or cancellation, and, for that purpose, may deal with brokerage transactions originating before the withdrawal, suspension or cancellation.
2013, c.31, s.11
Terms and conditions on registration
9(1)The Director may, at any time and in accordance with the regulations, impose terms and conditions on the registration of a credit grantor, lessor or credit broker or on the suspension or cancellation of the registration of a credit grantor, lessor or credit broker.
9(2)In addition to any terms and conditions imposed in accordance with the regulations, the Director may at any time impose such terms and conditions as the Director considers appropriate on the registration of a credit grantor, lessor or credit broker or on the suspension or cancellation of the registration of a credit grantor, lessor or credit broker.
2013, c.31, s.11; 2016, c.40, s.1
Documents to be provided to the Director
2013, c.31, s.11
10(1)A credit grantor shall provide to the Director
(a) immediately after an amendment is made to a document required to be provided to the Director under paragraph 7(2)(a), a copy of the amended document, and
(b) upon the request of the Director, a copy of any document that is used in relation to the extension of credit.
10(2)A lessor shall provide to the Director
(a) immediately after an amendment is made to a document required to be provided to the Director under paragraph 7(2)(b), a copy of the amended document, and
(b) upon the request of the Director, a copy of any document that is used in relation to the leasing of goods.
10(3)A credit broker shall provide to the Director
(a) immediately after an amendment is made to a document required to be provided to the Director under paragraph 7(2)(c), a copy of the amended document, and
(b) upon the request of the Director, a copy of any document that is used in relation to arranging, negotiating or facilitating or attempting to arrange, negotiate or facilitate an extension of credit.
2013, c.31, s.11
Suspension or cancellation of registration
11(1)Subject to subsection (3), the Director may suspend or cancel the registration of a credit grantor, lessor or credit broker
(a) if the credit grantor, lessor or credit broker has failed to comply with any term or condition of the registration,
(b) if, in the opinion of the Director, the credit grantor, lessor or credit broker has contravened or has failed to comply with any provision of this Act or the regulations or any order or direction given under this Act or the regulations, or
(c) if the Director considers it to be in the public interest to suspend or cancel the registration.
11(2)Where a credit grantor, lessor or credit broker has more than one branch office in New Brunswick, the Director may suspend or cancel the registration of the credit grantor, lessor or credit broker with respect to one or more of the branch offices instead of suspending or cancelling the registration with respect to all of the branch offices.
11(3)The Director shall not suspend for a period of more than 30 days or cancel the registration of a credit grantor, lessor or credit broker without giving the credit grantor, lessor or credit broker an opportunity to be heard.
2013, c.31, s.11; 2016, c.40, s.1
Appeals
12(1)A person directly affected by a decision made under section 7 or 11 may appeal that decision to the Tribunal within 30 days after the date of the decision.
12(2)Despite subsection (1), the Tribunal may extend the period for appealing a decision, before or after the expiration of the time, if it is satisfied that there are reasonable grounds for an extension.
2013, c.31, s.11; 2017, c.48, s.4
Mandatory cancellation of registration
13The Director shall cancel the registration of a credit grantor, lessor or credit broker
(a) if the Director is satisfied that the credit grantor, lessor or credit broker is deceased,
(b) if the Director is satisfied that a body corporate that is the credit grantor, lessor or credit broker has been dissolved, or
(c) if the credit grantor, lessor or credit broker has become bankrupt.
2013, c.31, s.11
Notice of cancellation of registration
14The Director shall cancel the registration of a credit grantor, lessor or credit broker by giving notice of the cancellation in The Royal Gazette.
2013, c.31, s.11
Address for service and membership of partnership
15(1)In addition to providing the information referred to in subsection 7(2), a credit grantor, lessor or credit broker who applies for registration shall state in the application an address for service for the credit grantor, lessor or credit broker in New Brunswick.
15(2)Every credit grantor, lessor or credit broker required to be registered under this Part shall within 5 days after any change in the address for service of the credit grantor, lessor or credit broker give the Director notice of the change and state the new address for service in New Brunswick.
15(3)Where a credit grantor, lessor or credit broker required to be registered under this Part is a partnership, the credit grantor, lessor or credit broker shall, within 5 days after any change in the membership of the partnership give notice of the change to the Director and state the details of the change in membership.
2013, c.31, s.11
III
GENERAL DISCLOSURE REQUIREMENTS AND
RIGHTS OF BORROWERS AND LESSEES
Non-application of Part
2008, c.3, s.1
15.1This Part, except sections 17, 22 and 23, does not apply in respect of credit agreements in relation to payday loans.
2008, c.3, s.1
Delivery of initial disclosure statement
16(1)Subject to subsection (3), a credit grantor shall deliver the initial disclosure statement for a credit agreement to the borrower before the earlier of
(a) the date on which the borrower enters into the credit agreement, and
(b) the date on which the borrower makes any payment in connection with the credit agreement.
16(2)A lessor shall deliver the initial disclosure statement for a lease to the lessee before the earlier of
(a) the date on which the lessee enters into the lease, and
(b) the date on which the lessee makes any payment in connection with the lease.
16(3)A credit grantor shall deliver the initial disclosure statement for a credit agreement in relation to a mortgage loan to the borrower at least 2 business days before the earlier of
(a) the date on which the borrower incurs any obligation to the credit grantor in connection with the credit agreement, other than an obligation in respect of an expense, charge or fee referred to in paragraph 1(3)(f) or prescribed by regulation, and
(b) the date on which the borrower makes any payment to the credit grantor in connection with the credit agreement, other than a payment in respect of an expense, charge or fee referred to in paragraph 1(3)(f) or prescribed by regulation.
16(4)The borrower under a credit agreement referred to in subsection (3) may, in accordance with the regulations, waive the time period referred to in that subsection, and, in that event, the credit grantor shall deliver the initial disclosure statement for the credit agreement in relation to the mortgage loan on or before the earlier of the dates referred to in paragraphs (3)(a) and (b).
Disclosure in advertisements
17Where a credit grantor or lessor who publishes an advertisement or on whose behalf an advertisement is published is, as a result of disclosing certain information in the advertisement, required under this Act to include additional information in the advertisement, the credit grantor or lessor shall ensure that,
(a) if the information that is required to be included is the APR, the APR is disclosed at least as prominently as is the information that necessitated the inclusion of the APR,
(a.1) if the information that is required to be included is the annual interest rate, the annual interest rate is disclosed at least as prominently as is the information that necessitated the inclusion of the annual interest rate, and
(b) the additional information to be included is disclosed in a conspicuous manner.
2008, c.12, s.1
Form of disclosure statements and statements of account
18(1)A credit grantor or lessor who is required to provide a disclosure statement or a statement of account under this Act shall ensure that the statement
(a) is in writing, or, with the consent of the borrower or lessee, in any other form that allows the borrower or lessee to retain the statement for future reference,
(b) contains the information required under this Act, and
(c) expresses the information referred to in paragraph (b) clearly, concisely, in a logical order and in a manner that is likely to bring the information to the attention of the borrower or lessee.
18(2)A disclosure statement or a statement of account may be a separate document or part of another document.
Delivery of documents by credit grantors or lessors
19(1)Where a credit grantor or lessor is required under this Act to deliver a disclosure statement, statement of account, notice or other document to a borrower or lessee, any of the following methods may be used:
(a) personal delivery;
(b) ordinary mail;
(c) registered mail;
(d) prepaid courier;
(e) telephone transmission producing a facsimile; or
(f) with the consent of the borrower or lessee, any other method that allows the borrower or lessee to retain the disclosure statement, statement of account, notice or other document for future reference.
19(2)Where there is more than one borrower under a credit agreement or more than one lessee under a lease, the credit grantor or lessor may, with the consent of all the borrowers or lessees, deliver a disclosure statement, statement of account, notice or other document to any one of the borrowers or lessees.
19(3)Subsection (2) does not apply to a notice or other document prescribed by regulation.
19(4)Where the consent referred to in subsection (2) is given and delivery of a disclosure statement, statement of account, notice or other document is made to one of the borrowers under the credit agreement or one of the lessees under the lease, any other borrower under the credit agreement or any other lessee under the lease may request a separate disclosure statement, statement of account, notice or other document, and the credit grantor or lessor shall provide it free of charge within 30 days after the request.
Estimates and assumptions
20A credit grantor or lessor may base information disclosed under this Act, whether in a disclosure statement, statement of account, advertisement or otherwise, on an estimate or assumption if
(a) the disclosure depends on information that is not ascertainable by the credit grantor or lessor at the time of disclosure, and
(b) the estimate or assumption is reasonable and is clearly identified as an estimate or assumption.
Borrower or lessee may choose insurer
21(1)A borrower or lessee who is required by a credit grantor or lessor to purchase insurance may purchase it from any insurer authorized to provide that type of insurance in New Brunswick, except that the credit grantor or lessor may, on reasonable grounds, disapprove an insurer selected by the borrower or lessee.
21(2)A credit grantor or lessor who offers to provide or to arrange insurance referred to in subsection (1) shall, at the time of the offer, clearly disclose to the borrower or lessee in writing that the borrower or lessee may, subject to subsection (1), purchase the required insurance through an insurance agent and from an insurer of the borrower’s or lessee’s choice.
Borrower or lessee may cancel optional services
22(1)A borrower or lessee may cancel an optional service of a continuing nature that is provided by the credit grantor or lessor or an associate of the credit grantor or lessor by giving 30 days’ notice, or such shorter period of notice as is provided for by the agreement under which the service is provided.
22(2)A borrower or lessee who cancels an optional service under subsection (1)
(a) is not liable for charges relating to any portion of the service that has not been provided at the time of cancellation, and
(b) is entitled to a refund of any amount already paid for those charges.
Prepayment
23(1)This section does not apply in respect of credit agreements in relation to mortgage loans.
23(2)A borrower is entitled to prepay the outstanding balance of a credit agreement at any time without any prepayment charge or penalty.
23(3)Where a borrower prepays the outstanding balance of a credit agreement for fixed credit, the credit grantor shall refund or credit the borrower with a portion of any non-interest finance charges paid by the borrower or added to the outstanding balance.
23(4)The portion of each non-interest finance charge that shall be refunded or credited to the borrower under subsection (3) shall be calculated in accordance with the regulations.
23(5)A borrower is entitled, on any scheduled payment date, or at least monthly, to prepay a portion of the outstanding balance of a credit agreement for fixed credit, without any prepayment charge or penalty, but, in that event, is not entitled to a refund or credit in respect of any non-interest finance charges.
Default charges
24(1)A credit grantor or lessor shall not impose by a credit agreement or lease any default charges other than the following:
(a) reasonable charges in respect of legal costs incurred in collecting or attempting to collect a payment;
(b) reasonable charges in respect of costs, including legal costs, incurred in realizing a security interest or protecting the subject matter of a security interest after the borrower has defaulted under a credit agreement; and
(c) reasonable charges that reflect the costs incurred by the credit grantor or lessor because a cheque or other payment instrument given by the borrower or lessee to the credit grantor or lessor was dishonoured.
24(2)For the purposes of paragraphs (1)(a) and (b), reasonable charges include solicitor and client costs.
24(3)A borrower or lessee is not liable for any default charge other than a default charge imposed under paragraphs (1)(a) to (c).
Invitation to defer payment
25(1)Where a credit grantor or lessor invites a borrower or lessee to defer making a payment that would otherwise be due under a credit agreement or lease, the credit grantor or lessor shall clearly disclose in the invitation whether or not interest will accrue on the unpaid amount during the period during which payment is deferred.
25(2)Where an invitation referred to in subsection (1) does not state whether or not interest will accrue on the unpaid amount during the period during which payment is deferred, the credit grantor or lessor shall be deemed to waive the interest that would otherwise accrue during the period.
IV
CREDIT BROKERS
Non-application of Part
2008, c.3, s.1
25.1This Part does not apply in respect of credit agreements in relation to payday loans.
2008, c.3, s.1
Credit brokers and non-business credit grantors
26(1)This section applies where a credit broker arranges a credit agreement involving a credit grantor who does not enter into the credit agreement in the ordinary course of carrying on a business.
26(2)Sections 16, 18, 19, 20, 32, 33, 34, 35, 36, 37, 41 and 42 apply with the necessary modifications to a credit broker.
26(3)Notwithstanding subsection (2), the references to “credit grantor” in paragraphs 16(3)(a) and (b), 32(1)(u), 36(3)(c), 41(1)(i) and 42(2)(b) shall continue to be read as “credit grantor” and the reference to “whether or not the credit grantor is willing” in subsection 36(1) shall continue to be read as “whether or not the credit grantor is willing”.
26(4)For the purposes of subsection (2), the reference to “credit grantor” in subsection 1(1) in the definition “business day” shall be read as “credit broker” and the reference in subsection 36(2) to “credit grantor who is willing to renew a credit agreement in relation to a mortgage loan shall” shall be read as “credit broker shall, if the credit grantor is willing to renew a credit agreement in relation to a mortgage loan,”.
26(5)Where the borrower pays or is required to pay a brokerage fee, the credit broker shall ensure that the initial disclosure statement for the credit agreement, in addition to containing any other information required under this Act to be disclosed in an initial disclosure statement for the credit agreement,
(a) states the amount of the brokerage fee,
(b) accounts for the brokerage fee in the total cost of credit, and
(c) in the case of a credit agreement for fixed credit, accounts for the brokerage fee in the APR.
2008, c.12, s.2
Credit brokers and business credit grantors
27(1)This section applies where a credit broker arranges a credit agreement involving a credit grantor who enters into the credit agreement in the ordinary course of carrying on a business.
27(2)Where the credit grantor deducts a brokerage fee from the value received or to be received by the borrower in connection with the credit agreement, the credit grantor shall ensure that the initial disclosure statement for the credit agreement, in addition to containing any other information required under this Act to be disclosed in an initial disclosure statement for the credit agreement,
(a) states the amount of the brokerage fee,
(b) accounts for the brokerage fee in the total cost of credit, and
(c) in the case of a credit agreement for fixed credit, accounts for the brokerage fee in the APR.
27(3)Where the credit broker takes a loan application from the borrower and forwards it to the credit grantor, the credit broker shall deliver to the borrower a disclosure statement for the credit agreement containing
(a) the information referred to in subsection (2), and
(b) any other information that is required under this Act to be disclosed in an initial disclosure statement for the credit agreement.
27(4)Section 16 applies with the necessary modifications to a disclosure statement under subsection (3).
27(5)Notwithstanding subsection (4), the references to “credit grantor” in paragraphs 16(3)(a) and (b) shall continue to be read as “credit grantor”.
27(6)For the purposes of subsection (4), the reference to “credit grantor” in subsection 1(1) in the definition “business day” shall be read as “credit broker”.
27(7)Where the credit broker is required to deliver a disclosure statement under subsection (3), the credit grantor may adopt the disclosure statement as its initial disclosure statement.
27(8)Subject to subsection (9), section 16 does not apply to a credit grantor who adopts a disclosure statement as its initial disclosure statement under subsection (7).
27(9)A credit grantor who adopts a disclosure statement as its initial disclosure statement under subsection (7) shall ensure that the disclosure statement contains the information required under this Act to be disclosed in an initial disclosure statement for the credit agreement.
2008, c.12, s.3
V
FIXED CREDIT
Application of Part
28(1)Subject to subsection (2), this Part applies in respect of credit agreements for fixed credit.
28(2)This Part, except subsections 30(1), (2), (5) and (6), does not apply in respect of credit agreements in relation to payday loans.
2008, c.3, s.1
Credit sales
29Where a credit agreement is in relation to a credit sale, the credit grantor shall ensure that the credit agreement is a scheduled-payments credit agreement.
Advertising for fixed credit
30(1)This section applies in respect of advertisements that
(a) offer fixed credit, and
(b) state the interest rate or amount of any payment.
30(2)A credit grantor shall ensure that an advertisement that is published by or on behalf of the credit grantor states
(a) the APR, and
(b) the term.
30(3)In addition to complying with subsection (2), the credit grantor shall ensure that
(a) an advertisement for a credit sale of a specifically identified product states the cash price of the product, and
(b) an advertisement for a credit sale of a specifically identified product in connection with which any non-interest finance charge is payable states
(i) the cash price of the product, and
(ii) the total cost of credit.
30(4)Notwithstanding paragraph (3)(b), an advertisement on radio, television, a billboard or another medium with similar time or space limitations need not state the total cost of credit.
30(5)Where any of the information required to be disclosed under subsection (2) or (3) would not be the same for all credit agreements to which the advertisement relates, the credit grantor shall ensure that the information is for a representative transaction and is identified as being for a representative transaction.
30(6)For the purposes of subsection (5), a transaction is a representative transaction if its terms are typical of the terms of the credit agreements to which the advertisement relates.
Advertising interest-free periods
31(1)A credit grantor shall ensure that an advertisement that is published by or on behalf of the credit grantor and that states or implies that no interest is payable for a certain period in respect of a transaction under a credit agreement, states 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.
31(2)If interest accrues during the period but will be forgiven under certain conditions, the credit grantor shall ensure that the advertisement also states
(a) the conditions, and
(b) the APR for the period, assuming the conditions are not met.
31(3)An advertisement referred to in subsection (1) that does not contain the information required to be disclosed under paragraph (1)(b) and subsection (2) shall be deemed to represent that the transaction is unconditionally interest-free during the relevant period.
Initial disclosure statement for fixed credit
32(1)A credit grantor shall ensure that the initial disclosure statement for a scheduled-payments credit agreement contains the following information:
(a) the effective date of the statement;
(b) for a credit sale, a description of the product;
(c) the outstanding balance as of the effective date of the statement, taking into account every payment made by the borrower on or before the effective date of the statement;
(d) the nature and amount of each advance, charge or payment taken into account in the outstanding balance disclosed under paragraph (c);
(e) the term;
(f) the amortization period if it is longer than the term;
(g) the date on which interest begins to accrue and the details of any grace period;
(h) the annual interest rate and the circumstances under which interest will be compounded;
(i) if the annual interest rate may change during the term,
(i) the initial annual interest rate and the compounding period,
(ii) the method of determining the annual interest rate at any time, and
(iii) unless the amount of scheduled payments is adjusted automatically to account for changes in the annual interest rate, the lowest annual interest rate, based on the initial outstanding balance, at which the payments would not cover the interest that would accrue between payments;
(j) the nature and amount of any charges, other than interest, that are not disclosed under paragraph (d) but that will become payable by the borrower in connection with the credit agreement;
(k) the amount and timing of any advances to be made after the effective date of the disclosure statement;
(l) the amount and timing of any payments to be made after the effective date of the disclosure statement;
(m) the total of all advances made or to be made in connection with the credit agreement;
(n) the total of all payments to be made in connection with the credit agreement;
(o) the total cost of credit;
(p) the APR;
(q) the nature of any default charges provided for by the credit agreement;
(r) a description of the subject matter of any security interest;
(s) for a credit agreement in relation to a mortgage loan, a statement of the conditions, if any, under which the borrower may make prepayments, and any charge for prepayment;
(t) for a credit agreement other than a credit agreement in relation to a mortgage loan, a statement that
(i) the borrower is entitled to prepay the outstanding balance at any time without any prepayment charge or penalty, and
(ii) the borrower is entitled to prepay a portion of the outstanding balance on any scheduled payment date, or at least monthly, without any prepayment charge or penalty;
(u) the nature, amount and timing of charges for any optional services purchased by the borrower that are payable to or through the credit grantor; and
(v) the conditions under which the borrower may terminate services referred to in paragraph (u).
32(2)A credit grantor shall ensure that the initial disclosure statement for a credit agreement that is not a scheduled-payments credit agreement
(a) contains the information referred to in paragraphs (1)(a) to (d), (g) to (j), (m) and (p) to (v), and
(b) either states the circumstances under which the outstanding balance, or any portion of it, must be paid or specifies the provisions of the credit agreement that describe those circumstances.
2008, c.12, s.4
Disclosure regarding changes in interest rate
33(1)Where the interest rate under a credit agreement is a floating rate, the credit grantor shall, at least once every 12 months, deliver to the borrower a disclosure statement for the credit agreement containing the following information:
(a) the period covered by the statement, which period shall run from the date of the disclosure statement most recently delivered to the borrower under this section or section 32;
(b) the annual interest rate at the beginning and end of the period covered by the statement;
(c) the outstanding balance at the beginning and end of the period covered by the statement; and
(d) for a scheduled-payments credit agreement, the amount and timing of all remaining payments based on the annual interest rate that applies at the end of the period covered by the statement.
33(2)Where the interest rate under a credit agreement is not a floating rate but is nevertheless subject to change, the credit grantor shall, within 30 days after the date on which the annual interest rate is increased by 1% or more over the rate most recently disclosed to the borrower, deliver to the borrower a disclosure statement for the credit agreement containing the following information:
(a) the date of the statement;
(b) the new annual interest rate and the date on which the new rate took effect; and
(c) the timing and new amount of any payments to be made after the date referred to in paragraph (b).
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 amendment
35(1)This section does not apply to changes effected by a renewed agreement to which section 36 or 37 applies.
35(2)If a credit agreement is amended, the credit grantor shall, within 30 days after the amendment is made, deliver to the borrower a supplementary disclosure statement that meets the requirements of subsection (3).
35(3)A supplementary disclosure statement referred to in subsection (2) shall set out the information that, as a result of the amendment to the credit agreement, is changed from the initial disclosure statement but need not repeat any information that is unchanged from the initial disclosure statement.
35(4)Where an amendment consists only of a revision to the schedule of payments, a supplementary disclosure statement referred to in subsection (2) need not state any change in the APR or any decrease in the total cost of credit or total payments.
Disclosure regarding renewals of credit agreements in relation to mortgage loans
36(1)Where the amortization period for a mortgage loan under a scheduled-payments credit agreement is longer than the term of the credit agreement, the credit grantor shall, at least 21 days before the end of the term, deliver to the borrower a written notice stating whether or not the credit grantor is willing to renew the credit agreement in relation to the mortgage loan for a further term.
36(2)A credit grantor who is willing to renew a credit agreement in relation to a mortgage loan shall include with the notice referred to in subsection (1) a disclosure statement for the renewed agreement that contains the following information and is based on the assumption that the borrower will make all payments that are due under the original credit agreement in relation to the mortgage loan:
(a) the effective date of the renewed agreement;
(b) the outstanding balance as of the effective date of the renewed agreement;
(c) the nature and amount of any non-interest finance charges that are payable in connection with the renewed agreement;
(d) the term;
(e) the relevant interest rate information referred to in paragraph 32(1)(h) or (i);
(f) the APR;
(g) the amount and timing of all payments to be made in connection with the renewed agreement;
(h) the total of all payments to be made in connection with the renewed agreement;
(i) the total cost of credit;
(j) the amortization period; and
(k) a statement of the conditions, if any, under which the borrower may make prepayments, and any charge for prepayment.
36(3)Where a credit agreement in relation to a mortgage loan is to be renewed, and the credit grantor does not, at least 21 days before the effective date of the renewed agreement, deliver to the borrower a disclosure statement that reflects the terms of the renewed agreement,
(a) the credit grantor shall, on or before the effective date of the renewed agreement, deliver to the borrower a disclosure statement that reflects the terms of the renewed agreement,
(b) the borrower is entitled to prepay the outstanding balance of the renewed agreement without penalty at any time within 21 days after receiving the disclosure statement referred to in paragraph (a), and
(c) the borrower, on exercising the right referred to in paragraph (b), is entitled to a refund by the credit grantor of any non-interest finance charges imposed in connection with the renewed agreement.
36(4)Subsection (3) does not apply if a credit grantor delivers to the borrower a disclosure statement for the renewed agreement at least 21 days before the effective date of the renewed agreement, and the disclosure statement does not reflect the terms of the renewed agreement for any of the following reasons:
(a) the outstanding balance on the effective date of the renewed agreement differs from what was stated in the disclosure statement because of one or more missed, late, early or extra payments;
(b) the interest rate under the renewed agreement is lower than the interest rate stated in the disclosure statement; or
(c) the amortization period or frequency of payments under the renewed agreement differs from what was stated in the disclosure statement.
36(5)If subsection (4) applies, the credit grantor shall, within 30 days after the effective date of the renewed agreement, deliver to the borrower a revised disclosure statement that reflects the terms of the renewed agreement.
Disclosure regarding renewals of credit agreements not in relation to mortgage loans
37Where a credit agreement, other than a credit agreement in relation to a mortgage loan, is renewed, the credit grantor shall deliver to the borrower on or before the effective date of the renewed agreement a disclosure statement containing the information referred to in paragraphs 36(2)(a) to (k).
V.1
PAYDAY LOANS
2008, c.3, s.1
A
Definitions
2008, c.3, s.1
Definitions
2008, c.3, s.1
37.1The following definitions apply in this Part.
“applicant” means a person who applies for a licence or for the renewal of a licence under this Part.(demandeur)
“borrower” means a person who is a borrower in relation to a payday loan.(emprunteur)
“cash card” means a card or other device that(carte porte-monnaie électronique)
(a) can be used to obtain cash or acquire goods or services, and
(b) is issued by a payday lender to a borrower instead of advancing cash or transferring money to the borrower or to the order of the borrower,
but does not include a credit card.
“cheque cashing fee” means(frais d’encaissement de chèque)
(a) a fee, rate, commission, charge or other amount or consideration charged, paid or given for cashing or negotiating a government cheque, and
(b) any other fee, rate, commission, charge or other amount or consideration designated by regulation as a cheque cashing fee.
“government agency” means any division or portion of the Public Service, as defined in the Public Service Labour Relations Act, that is designated by regulation as a government agency. (organisme gouvernemental)
“government cheque” means a cheque, or other written order to pay, drawn on an account of (chèque du gouvernement)
(a) the Government of Canada,
(b) the Government of New Brunswick,
(c) a government agency, or
(d) a local government agency.
“Internet payday loan” means a payday loan under an agreement between a borrower and a credit grantor that is formed by Internet communications or by a combination of Internet and fax communications. (prêt sur salaire par Internet)
“licence” means, unless the context otherwise requires, a licence issued under this Part that is not suspended or cancelled.(permis)
“licensee” means a person who holds a licence under this Part.(titulaire de permis)
“local government agency” means a local government as defined in subsection 1(1) of the Local Governance Act, that is designated by regulation as a local government agency.(organisme d’administration locale)
“payday lender” means a credit grantor who offers, arranges or provides a payday loan. (prêteur)
“payday loan” means a loan of money (prêt sur salaire)
(a) with a principal of no more than $1,500,
(b) with a term that is no longer than 62 days, and
(c) that is made in exchange for a post-dated cheque, a pre-authorized debit or a future payment of a similar nature but not for any guarantee, suretyship, overdraft protection or security on property and not through a margin loan, pawnbroking, a line of credit or a credit card.
“payday loan agreement” means, in relation to a payday loan, the written agreement required under section 37.28.(contrat de prêt sur salaire)
“rollover” means(reconduction)
(a) the extension or renewal of a payday loan that imposes additional fees or charges on the borrower, other than interest, or
(b) the advancement of a new payday loan to pay out an existing payday loan.
“rule” means a rule made under section 37.467, or if the context requires, a rule made under the Financial and Consumer Services Commission Act.(règle)
“term” means, in relation to the duration of a payday loan, the period between the first advance and the last payment anticipated by the payday loan agreement.(durée)
“third party service charge” means, in relation to a cash card issued by a payday lender, any fee, rate, commission, charge or other amount that is charged or required by a person who is not the payday lender, or that is paid to such a person, for use of the cash card.(frais de services offerts par un tiers)
“wages” includes salary and periodic payments in respect of loss of future income or loss of earning capacity. (salaire)
2008, c.3, s.1; 2014, c.31, s.1; 2017, c.20, s.181
B
Application
2008, c.3, s.1
Non-application of Part
2008, c.3, s.1
37.11(1)This Part does not apply in respect of a payday loan that was made before the commencement of this subsection.
37.11(2)Notwithstanding subsection (1), subsection 37.34(1) and the remedies and penalties available under section 37.34, section 51.6 and any other provision of this Act for contravention of subsection 37.34(1) apply in respect of
(a) an extension or renewal granted after the commencement of this subsection of a payday loan that was made before or after the commencement of this subsection, or
(b) an advancement of a new payday loan after the commencement of this subsection to pay out a payday loan that was made before or after the commencement of this subsection.
37.11(3)This Part does not apply in respect of financial products or services regulated under the Loan and Trust Companies Act, the Insurance Act, the Credit Unions Act and any other Act prescribed by regulation.
37.11(4)A transaction or class of transactions or a person or class of persons may by regulation be exempted from the application of this Part or the regulations relating to this Part or any provision of this Part or the regulations relating to this Part.
2008, c.3, s.1; 2014, c.31, s.1; 2016, c.40, s.2
C
Licensing
2008, c.3, s.1
Licence required to provide payday loans
2008, c.3, s.1
37.12(1)No person shall offer, arrange or provide a payday loan from a location except under the authority of a licence issued to the person or the person’s employer for that location.
37.12(2)No person shall offer, arrange or provide an Internet payday loan from a website to a borrower in the Province except under the authority of a licence issued to that person or the person’s employer that specifies that the person or employer may offer, arrange or provide Internet payday loans from that website.
2008, c.3, s.1; 2014, c.31, s.1
Application for licence or renewal of licence
2008, c.3, s.1
37.13(1)A person may apply to the Director, on a form provided by the Director, for
(a) a licence authorizing the person to offer, arrange or provide payday loans at a location specified on the licence or Internet payday loans from a website specified on the licence, or
(b) a renewal of a licence.
37.13(1.1)An application for a licence must specify
(a) the location from which the applicant wishes to offer, arrange or provide payday loans, or
(b) the website from which the applicant wishes to offer, arrange or provide Internet payday loans.
37.13(2)A person who wishes to offer, arrange or provide payday loans at more than one location shall apply for a separate licence for each location.
37.13(3)When applying for a licence or a renewal of a licence, the applicant shall provide the information or documents required by this section, the regulations, the application form and any other information or documents that the Director may require.
37.13(4)Before a licence is issued or renewed by the Director, the applicant shall pay the licence fee or licence renewal fee specified in the regulations.
2008, c.3, s.1; 2014, c.31, s.1
Issuance or renewal of licence
2008, c.3, s.1
37.14The Director may
(a) issue a licence to an applicant, or renew the licence of an applicant, if the Director is satisfied that the applicant meets all the qualifications and satisfies all the requirements of this Part and the regulations in relation to the application for a licence or for the renewal of a licence, or
(b) refuse under section 37.2 to issue a licence to an applicant or under section 37.21 to renew the licence of an applicant.
2008, c.3, s.1; 2014, c.31, s.1
Bond or other security required
2008, c.3, s.1
37.15(1)Before a licence is issued by the Director, the applicant shall provide the Director with a bond or other form of security acceptable to the Director and payable to the Commission.
37.15(2)The terms, conditions and amount of the bond or other security shall be satisfactory to the Director and shall meet the requirements of the regulations.
2008, c.3, s.1; 2014, c.31, s.1
Licence not transferable or assignable
2008, c.3, s.1
37.16A licence is not transferable or assignable.
2008, c.3, s.1
Terms and conditions of licence
2008, c.3, s.1
37.17(1)The Director may at any time restrict a licence by imposing any terms and conditions that he or she considers appropriate on the licence.
37.17(2)The Director shall not impose terms and conditions on a licence without giving the applicant or licensee an opportunity to be heard.
37.17(3)A licensee shall comply with the terms and conditions imposed by the Director under subsection (1) and to any terms and conditions for the licence set out in the regulations.
2008, c.3, s.1; 2014, c.31, s.1; 2016, c.40, s.2
Further information or documents
2008, c.3, s.1
37.18In addition to any information or documents required under this Act or the regulations to be submitted, provided, produced, delivered or given to or filed with the Director by an applicant, an applicant shall, if requested to do so by the Director and within the period specified by the Director,
(a) provide to the Director any further information or documents that the Director may reasonably require for the purposes of ensuring compliance with this Part or the regulations relating to this Part, and
(b) verify, by affidavit or otherwise, any information or documents submitted, provided, produced, delivered or given to or filed with the Director under paragraph (a) or any other provision of this Act or the regulations.
2008, c.3, s.1; 2014, c.31, s.1; 2016, c.40, s.2
Duration of licence
2008, c.3, s.1
37.19(1)A licence ceases to be valid one year after the day it is issued or, in the case of any renewal, on the next anniversary date of its issuance.
2008, c.3, s.1
Refusal to issue licence
2008, c.3, s.1
37.2(1)The Director may refuse to issue a licence to an applicant if
(a) the applicant has been convicted of
(i) an offence under this Act or the regulations, or
(ii) an offence under the Criminal Code (Canada) or any other Act or any regulation under any other Act that, in the opinion of the Director, involves a dishonest action or intent,
(b) the applicant is an undischarged bankrupt,
(c) the applicant provides incomplete, false, misleading or inaccurate information in support of the application,
(d) a licence previously issued to the applicant under this Part, or by an authority responsible for issuing licences with respect to the lending of money in any jurisdiction, is suspended or has been cancelled, or the applicant has applied for a renewal of such a licence and the renewal has been refused,
(e) the applicant fails to meet any qualification or satisfy any requirement of this Part or the regulations relating to this Part,
(f) in the Director’s opinion, the applicant will not carry on business according to law and with integrity and honesty, or
(g) in the Director’s opinion, it is not in the public interest to issue a licence to the applicant.
37.2(2)The Director may refuse to issue a licence to
(a) a corporation, if a director or officer of the corporation could be refused a licence under subsection (1), or
(b) a partnership, if a member of the partnership could be refused a licence under subsection (1).
37.2(2.1)The Director shall not refuse to issue a licence to an applicant without giving the applicant an opportunity to be heard.
2008, c.3, s.1; 2014, c.31, s.1; 2016, c.40, s.2
Refusal to renew or cancellation or suspension
2008, c.3, s.1
37.21(1)The Director may refuse to renew or may cancel or suspend a payday lender’s licence
(a) for any reason for which the Director may refuse to issue a licence under section 37.2,
(b) if the payday lender fails to provide information or documents required by the Director or the regulations, or provides incomplete, false, misleading or inaccurate information to the Director,
(c) if the payday lender contravenes or fails to comply with this Act or the regulations, or
(d) if the payday lender contravenes or fails to comply with a term or condition of the licence.
37.21(2)The Director shall not refuse to renew nor cancel or suspend a licence without giving the licensee an opportunity to be heard.
2008, c.3, s.1; 2014, c.31, s.1; 2016, c.40, s.2
Voluntary cancellation
2008, c.3, s.1
37.23The Director may cancel a licence upon the request in writing of the licensee and section 37.21 does not apply to the cancellation.
2008, c.3, s.1; 2014, c.31, s.1
Further application
2008, c.3, s.1
37.24A person who has been refused a licence or renewal of a licence under this Part or whose licence has been cancelled under this Part, other than under section 37.23, shall not reapply for a licence unless
(a) the period of time prescribed by regulation to reapply has passed since the refusal or cancellation, and
(b) the person satisfies the Director that new or other evidence is available or that material circumstances have changed.
2008, c.3, s.1; 2014, c.31, s.1
Appeal
2008, c.3, s.1
37.25(1)An appeal lies to the Tribunal from a decision of the Director not to issue or renew a licence, to impose terms and conditions on a licence or to cancel or suspend a licence if the appeal is made within 30 days after the date of the decision of the Director.
37.25(2)An appeal under this section does not stay the operation of the decision of the Director, unless the Tribunal orders otherwise, but the Director may himself or herself suspend the operation of the decision until the Tribunal has rendered its decision.
37.25(3)A notice of appeal shall be served on the Director and on such other persons as the Tribunal directs.
37.25(4)Upon being served with a notice of appeal, the Director shall file with the Registrar all documents in his or her possession relating to the appeal, all transcripts of evidence and a copy of the reasons for the decision.
37.25(5)The Director is entitled to be heard by the Tribunal upon the appeal of any of his or her decisions.
37.25(6)After hearing the appeal, the Tribunal may
(a) dismiss the appeal, or
(b) allow the appeal and set aside or vary the decision of the Director, and, where it considers it appropriate to do so, refer the matter back to the Director with directions.
2008, c.3, s.1; 2014, c.31, s.1; 2016, c.40, s.2
Serving of notices by the Director
2008, c.3, s.1; 2014, c.31, s.1
37.26(1)A notice or other document to be served on a person by the Director under this Part shall be served
(a) by delivering a copy of it to the person or to an officer or employee of the person,
(b) by sending a copy of it by registered mail to the person at the last address appearing in the Director’s records for the person or the person’s business, or
(c) in any other manner provided for in the regulations.
37.26(2)A notice or other document sent to a person in accordance with paragraph (1)(b) shall be deemed to have been served on the person not later than the fifth day after the day of mailing.
2008, c.3, s.1; 2014, c.31, s.1
D
Obligations and Prohibitions
2008, c.3, s.1
a
Regulation of Payday Lenders
2008, c.3, s.1
Payday loan agreements
2008, c.3, s.1
37.28(1)A payday lender shall ensure that the terms of a payday loan are included in a written agreement that is signed and dated by the borrower.
37.28(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 any business name used by the payday lender;
(b) the payday lender’s business address and, if different, the payday lender’s mailing address;
(c) the payday lender’s licence number, telephone number and, if the payday lender has a fax number or e-mail address, that fax number and e-mail address;
(d) the borrower’s name;
(e) the date of the making of the agreement;
(e.1) the date on which the first advance will be made to the borrower or to the order of the borrower, which date shall not be more than the number of days prescribed by regulation after the date of the making of the agreement;
(e.2) the date or dates on which any other advances will 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) with respect to each advance referred to in paragraphs (e.1) and (e.2), the amount of cash to be advanced to the borrower or the amount of money to be 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) if a cash card issued to the borrower has an expiry date, the date of that expiration;
(k) the total cost of credit and the APR;
(l) the rate of interest that applies, together with a statement of the total amount of interest that is payable under the agreement;
(m) each of the fees, penalties, rates, commissions or charges regulated under this Part or the regulations relating to this Part that apply, together with a statement of the amount of each of those fees, penalties, rates, commissions or charges;
(n) the amount and timing of any payments to be made by the borrower;
(o) a statement that the payday loan is a high cost loan;
(p) a statement of the borrower’s rights of cancellation under section 37.29, setting out how those rights can be exercised and identifying the time by which the borrower can exercise them;
(q) a statement of the remedies available to the borrower under subsection 37.31(2), 37.34(2) or (3) or 37.37(2);
(r) if a cash card is to be issued to the borrower, a statement identifying that third party service charges may apply for use of the card; and
(s) any other term, information or statement prescribed by regulation.
37.28(3)The payday lender shall ensure that the terms, information and statements required under subsection (2) are written in a clear and comprehensible manner.
37.28(4)A payday lender may base information required by subsection (2) to be included in a payday loan agreement on an estimate or assumption if
(a) the information required to be included depends on other information that is not ascertainable by the payday lender at the time the payday loan agreement is entered into, and
(b) the estimate or assumption is reasonable and is clearly identified as an estimate or assumption.
37.28(5)Before the borrower signs the payday loan agreement, the payday lender shall review with the borrower the matters described in paragraphs (2)(k) and (p) and require that the borrower initial each of those matters in the agreement.
37.28(6)The payday lender shall give the borrower a copy of the payday loan agreement at the time it is signed by the borrower, together with a notice of cancellation, containing the information prescribed by regulation and in a form approved by the Director, which may be used by the borrower for the purposes of subsection 37.29(4).
2008, c.3, s.1; 2014, c.31, s.1, 2016, c.5, s.1
Cancellation
2008, c.3, s.1
37.29(1)In subsections (4) and (5), “payday lender” includes an officer or employee of a payday lender at a location at which a payday loan was arranged or provided.
37.29(2)A borrower may cancel a payday loan within 48 hours, excluding Sundays and other holidays, after receiving the first advance or a cash card enabling the borrower to access funds under the loan.
37.29(3)In addition to having a cancellation right under subsection (2), a borrower may cancel a payday loan at any time, if
(a) the payday lender did not notify the borrower of his or her right under subsection (2) to cancel the loan,
(b) the notice of cancellation given to the borrower does not meet the requirements of subsection 37.28(6), or
(c) the payday lender did not hold a proper licence at the time the payday lender entered into the payday loan agreement with the borrower.
37.29(4)To cancel a payday loan under subsection (2) or (3), the borrower shall
(a) give written notice of the cancellation to the payday lender, and
(b) repay, by cash, certified cheque or money order or in a manner prescribed by regulation, the outstanding balance of all advances made, less any portion of the total cost of credit that was paid by or on behalf of the borrower or deducted or withheld from the advances.
37.29(5)For the purposes of paragraph (4)(b),
(a) if the first advance was made in the form of a cheque, a return of the unnegotiated cheque to the payday lender is to be considered a repayment of the first advance, and
(b) if the first advance was made in the form of a cash card that enabled the borrower to access funds under the payday loan, returning that card to the payday lender is to be considered a repayment of the first advance to the extent of the credit balance remaining on the card.
37.29(6)Upon the cancellation of a payday loan under this section,
(a) the payday lender shall immediately give the borrower a receipt, containing the information prescribed by regulation and in a form approved by the Director, for the amount that the borrower paid or returned to the payday lender upon cancelling the loan, and
(b) the payday lender shall immediately reimburse the borrower, in cash, for all amounts paid, and the value of any other consideration given, by or on behalf of the borrower in relation to the total cost of credit for the loan, less any amount deducted or withheld from the advances or from the repayment of them under paragraph (4)(b).
37.29(7)The cancellation of a payday loan under this section extinguishes every liability and obligation of the borrower under, or related to, the payday loan agreement.
37.29(8)No payday lender shall charge or require or accept the payment of, or arrange for or permit any other person to charge or to require or accept the payment of, any amount or consideration for, or as a consequence of, the cancellation of a payday loan under this section.
37.29(9)The cancellation rights under this section are in addition to, and do not affect, any other right or remedy the borrower has under the payday loan agreement or at law.
2008, c.3, s.1; 2014, c.31, s.1; 2016, c.5, s.1
Information to be posted
2008, c.3, s.1
37.3(1)A payday lender shall, in accordance with the regulations, post prominently and at each location at which the payday lender is licensed to offer, arrange or provide payday loans, signs that clearly and understandably set out, in the form required by the regulations,
(a) all components of the total cost of credit, including all fees, penalties, rates, commissions, charges, interest and other amounts and consideration for a representative payday loan transaction, and
(b) any other information required by the regulations.
37.3(2) For the purposes of subsection (1), a transaction is a representative payday loan transaction if its terms are typical of the terms of the payday loan agreements to which the advertisement relates.
2008, c.3, s.1
Limit regarding cost of credit
2008, c.3, s.1
37.31(1)No payday lender shall, in relation to a payday loan, charge or require or accept the payment of, or arrange for or permit any other person to charge or to require or accept the payment of, any amount or consideration that would result in the total cost of credit, or any component of the total cost of credit, of the loan being greater than the maximum allowed by regulation.
37.31(2)If a payday lender contravenes subsection (1),
(a) the borrower is not liable for any amount charged in relation to the total cost of credit for the payday loan, and
(b) the payday lender shall reimburse the borrower, in cash, immediately on demand by the borrower or the Director, for the total of all amounts paid and the value of any other consideration given in respect of the borrower’s total cost of credit for the payday loan.
2008, c.3, s.1; 2014, c.31, s.1
No security to be taken
2008, c.3, s.1
37.32No payday lender shall, as security for the payment of a payday loan or the performance of an obligation under a payday loan agreement, require, take or accept, directly or indirectly,
(a) real or personal property,
(b) an interest in real or personal property, or
(c) a guarantee.
2008, c.3, s.1
Tied selling prohibited
2008, c.3, s.1
37.33No payday lender shall make a payday loan contingent on the purchase of insurance or another product or service.
2008, c.3, s.1
No rollovers
2008, c.3, s.1
37.34(1)No payday lender shall grant a rollover.
37.34(2)If a payday lender contravenes subsection (1) by granting a rollover that is an extension or renewal of a payday loan,
(a) the borrower is not liable for any amount charged in relation to the total cost of credit for the payday loan, and
(b) the payday lender shall reimburse the borrower, in cash, immediately on demand by the borrower or the Director, for the total of all amounts paid and the value of any other consideration given in respect of the borrower’s total cost of credit for the payday loan.
37.34(3)If a payday lender contravenes subsection (1) by granting a rollover that is an advancement of a new payday loan to pay out an existing payday loan,
(a) the borrower is not liable for any amount charged in relation to the total cost of credit for the existing payday loan, and
(b) the payday lender shall reimburse the borrower, in cash, immediately on demand by the borrower or the Director, for the total of all amounts paid and the value of any other consideration given in respect of the borrower’s total cost of credit for the existing payday loan.
2008, c.3, s.1; 2014, c.31, s.1
Concurrent payday loans prohibited
2008, c.3, s.1
37.35No payday lender shall enter into a payday loan agreement with a borrower if
(a) the borrower has already entered into a payday loan agreement with the payday lender, and
(b) the payday loan agreement mentioned in paragraph (a) is still in effect.
2008, c.3, s.1
Payday loans in excess of maximum percentage
2008, c.3, s.1
37.36No payday lender shall enter into a payday loan agreement with a borrower under which the amount of credit to be extended to the borrower is in excess of the maximum percentage, allowed by regulation, of the net pay or other net income that will be received by the borrower during the term of the payday loan.
2008, c.3, s.1; 2014, c.31, s.1
Limit on amounts payable for default
2008, c.3, s.1
37.37(1)No payday lender shall, in relation to any default by the borrower under a payday loan, charge or require or accept the payment of, or arrange for or permit any other person to charge or to require or accept the payment of, any penalty or other amount except as allowed by regulation.
37.37(2)If a payday lender contravenes subsection (1),
(a) the borrower is not liable for any amount charged in relation to his or her default under the payday loan, and
(b) the payday lender shall reimburse the borrower, in cash, immediately on demand by the borrower or the Director, for any amount paid by the borrower in respect of that default.
2008, c.3, s.1; 2014, c.31, s.1
Wage assignments
2008, c.3, s.1
37.38(1)In this section, “assignment of wages” includes an order or direction by an employee to pay all or any part of his or her wages to another person.
37.38(2)An assignment of wages is not valid if it is given in consideration of a payday loan or an advance under a payday loan, or to secure or facilitate a payment in relation to a payday loan.
37.38(3)No payday lender shall request or require a person to make an assignment of wages in relation to a payday loan.
2008, c.3, s.1
Extension of other forms of credit
2008, c.3, s.1; 2014, c.31, s.1
37.381No payday lender shall extend credit to any person other than by means of a payday loan.
2008, c.3, s.1; 2014, c.31, s.1
Other prohibited practices
2008, c.3, s.1
37.39No payday lender shall engage in any practice that is prohibited by the regulations.
2008, c.3, s.1
Provision of information
2008, c.3, s.1; 2014, c.31, s.1
37.391A payday lender shall provide to the Director the information or documents prescribed by regulation, at the times prescribed by regulation and in the form determined by the Director.
2008, c.3, s.1; 2014, c.31, s.1; 2016, c.5, s.1
Late fees
2008, c.3, s.1; 2014, c.31, s.1
37.392A payday lender that provides a document or information to the Director after the time required by the regulations referred to in section 37.391 shall pay the late fee prescribed by regulation.
2008, c.3, s.1; 2014, c.31, s.1
Minimum working capital
2008, c.3, s.1
37.4A payday lender shall, at all times, maintain the minimum working capital prescribed by regulation.
2008, c.3, s.1
Joint liability
2008, c.3, s.1
37.43If a payday loan is arranged by one payday lender and provided by another payday lender, both payday lenders are jointly and severally liable
(a) to the borrower for any amount to be refunded or reimbursed to the borrower under this Part or the regulations relating to this Part, and
(b) to comply with any other requirements set out in this Part or the regulations relating to this Part.
2008, c.3, s.1; 2014, c.31, s.1
b
Cash Cards
2008, c.3, s.1
Payout of balances on cash cards
2008, c.3, s.1
37.44(1)In subsection (6), “delinquent borrower” means a borrower who fails to repay a payday loan by the end of the term of the payday loan.
37.44(2)If in respect of a payday loan the payday lender issues a cash card to the borrower, the borrower is entitled to be paid in cash the amount of the balance of credit remaining on the card in either of the following circumstances:
(a) the balance of credit remaining on the cash card is less than the amount prescribed by regulation; or
(b) the payday loan has been repaid by the borrower and the cash card has expired.
37.44(3)If a borrower is entitled under subsection (2) to be paid a balance of credit remaining on a cash card and returns the cash card to the payday lender, the payday lender shall pay the balance to the borrower, in cash, immediately on demand by the borrower or the Director.
37.44(4)On the return of a cash card by a borrower to a payday lender under this section, the payday lender shall immediately give the borrower a receipt for the cash card.
37.44(5)On the payment of an amount to a borrower under subsection (3), a payday lender shall
(a) include in the receipt given to the borrower under subsection (4) a statement of the amount paid, or
(b) immediately give the borrower a separate receipt indicating the amount paid.
37.44(6)The balance of credit remaining on an expired cash card issued to a delinquent borrower may, in accordance with the regulations, be applied by the payday lender as payment towards the payday loan.
2008, c.3, s.1; 2014, c.31, s.1
c
Government Cheque Cashing Fees
2008, c.3, s.1
Government cheque cashing fees
2008, c.3, s.1
37.45(1)In this section, “payer” means a person who pays or is charged or required to pay a cheque cashing fee.
37.45(2)No person shall charge or require or accept the payment of, or permit any other person to charge or to require or accept the payment of, a cheque cashing fee except as allowed by regulation.
37.45(3)If a person contravenes subsection (2),
(a) the payer is not liable to pay the cheque cashing fee or any part of it, and
(b) the person shall reimburse the payer, in cash, immediately on demand by the payer or the Director, for the total amount paid as a cheque cashing fee and the value of any other consideration given.
2008, c.3, s.1; 2014, c.31, s.1
E
Guidelines and Recommendations
2008, c.3, s.1; 2014, c.31, s.1
Guidelines regarding payday loan agreements
2008, c.3, s.1
37.46(1)To assist payday lenders in developing payday loan agreements that are clear and understandable, the Commission may issue guidelines about the form of such agreements.
37.46(2)The Regulations Act does not apply to guidelines issued under subsection (1).
2008, c.3, s.1; 2014, c.31, s.1
Recommendations to the Lieutenant-Governor in Council
2008, c.3, s.1; 2014, c.31, s.1
37.461The Commission may make recommendations to the Lieutenant-Governor in Council regarding desirable changes in, or additions to, the regulations made under paragraph 62(1)(aa.251), (aa.252), (aa.253) or (aa.6).
2008, c.3, s.1; 2014, c.31, s.1
Recommendations to Minister
2008, c.3, s.1; 2014, c.31, s.1
37.462The Commission may make recommendations to the Minister on matters in respect of payday loans and payday lenders.
2008, c.3, s.1; 2014, c.31, s.1
E.2
Rule-making
2008, c.3, s.1; 2014, c.31, s.1
Rules
2008, c.3, s.1; 2014, c.31, s.1
37.467(1)The Commission may make a rule in respect of any matter in respect of which the Lieutenant-Governor in Council has authority to make a regulation under paragraphs 62(1)(aa.1) to (aa.25) and (aa.26) to (aa.5), and subsections 62(2) and (3) apply, with the necessary modifications, as though the rule were a regulation.
37.467(2)The Lieutenant-Governor in Council may make regulations
(a) establishing the practices and procedures that are to be followed by the Commission in making or amending rules;
(b) providing for the form and content of a notice of a rule to be published in The Royal Gazette under paragraph 37.468(1)(b);
(c) governing the commencement of rules made by the Commission and establishing the period during which rules made by the Commission are effective.
37.467(3)The Lieutenant-Governor in Council may, by order, amend or repeal a rule made by the Commission.
37.467(4)Subject to the approval of the Minister, the Commission, concurrently with making a rule, may make a regulation that amends or repeals a provision of a regulation made by the Lieutenant-Governor in Council under this Act or by the Commission under this subsection that in the opinion of the Commission is necessary or advisable to effectively implement the rule.
37.467(5)A regulation made under subsection (4) is not effective before the rule referred to in that subsection comes into force.
37.467(6)Subject to subsection (5), a regulation made under subsection (4) may be retroactive in its operation.
37.467(7)The Regulations Act does not apply to the rules.
37.467(8)If there is a conflict or an inconsistency between a regulation made by the Lieutenant-Governor in Council under this Act and a rule made under this Act, the regulation prevails but in all other respects a rule has the same force and effect as a regulation.
2008, c.3, s.1; 2014, c.31, s.1; 2016, c.40, s.2
Notice and publication of rules
2008, c.3, s.1; 2014, c.31, s.1
37.468(1)As soon as practicable after a rule is made under section 37.467, the Commission shall
(a) publish the rule electronically, and
(b) publish in The Royal Gazette notice of the rule in accordance with the regulations.
37.468(2)Without delay after the Commission makes a rule, it shall make a copy of the rule available for public inspection at each of the Commission’s offices during the normal business hours of the Commission.
37.468(3)When notice of a rule has been published in The Royal Gazette in accordance with paragraph (1)(b), a person affected by the rule shall be deemed to have notice of it on the date the rule is published in accordance with paragraph (1)(a).
2008, c.3, s.1; 2014, c.31, s.1
Changes by Secretary of the Commission
2008, c.3, s.1; 2014, c.31, s.1
37.469The Secretary of the Commission may make changes respecting form, style, numbering and typographical, clerical or reference errors in a rule made by the Commission without changing the substance of the rule if the changes are made before the date the rule is published in accordance with paragraph 37.468(1)(a).
2008, c.3, s.1; 2014, c.31, s.1
Consolidated rules
2008, c.3, s.1; 2014, c.31, s.1
37.4691(1)The Secretary of the Commission may maintain a consolidation of the rules made by the Commission.
37.4691(2)In maintaining a consolidation of the rules, the Secretary of the Commission may make changes respecting form and style and respecting typographical errors without changing the substance of a rule.
37.4691(3)The Commission may publish the consolidated rules in the frequency that it considers appropriate.
37.4691(4)A consolidated rule does not operate as new law but shall be interpreted as a consolidation of the law contained in the original rule and any subsequent amendments.
37.4691(5)In the event of an inconsistency between a consolidated rule published by the Commission and the original rule or a subsequent amendment, the original rule or amendment prevails to the extent of the inconsistency.
2008, c.3, s.1; 2014, c.31, s.1
VI
OPEN CREDIT
Application of Part
38This Part applies in respect of credit agreements for open credit.
Advertising for open credit
39A credit grantor shall ensure that an advertisement that is published by or on behalf of the credit grantor and that gives any specific information about the cost of open credit states
(a) the current annual interest rate for the open credit, and
(b) any initial or periodic non-interest finance charges for the open credit.
2008, c.12, s.5
Advertising interest-free periods
40(1)A credit grantor shall ensure that an advertisement that is published by or on behalf of the credit grantor and that states or implies that no interest is payable for a certain period in respect of a transaction under a credit agreement states 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.
40(2)If interest accrues during the period but will be forgiven under certain conditions, the credit grantor shall ensure that the advertisement also states
(a) the conditions, and
(b) the annual interest rate for the period, assuming the conditions are not met.
40(3)An advertisement referred to in subsection (1) that does contain the information required to be disclosed under paragraph (1)(b) and subsection (2) shall be deemed to represent that the transaction is unconditionally interest-free during the relevant period.
Initial disclosure statement for open credit
41(1)A credit grantor shall ensure that the initial disclosure statement for a credit agreement contains the following information:
(a) the effective date of the statement;
(b) the credit limit;
(c) the minimum periodic payment or the method of determining the minimum periodic payment;
(d) the initial annual interest rate and the compounding period;
(e) if the annual interest rate may change, the method of determining the annual interest rate at any time;
(f) the date on which interest begins to accrue on advances or different types of advances and the details of any grace period;
(g) the nature and amount, or the method of determining the amount, of any non-interest finance charges that may become payable by the borrower in connection with the credit agreement;
(h) Repealed: 2008, c.12, s.6
(i) the nature, amount and timing of charges for any optional services purchased by the borrower that are payable to or through the credit grantor and the conditions under which the borrower may terminate the services;
(j) a description of the subject matter of any security interest;
(k) the nature of any default charges provided for by the credit agreement;
(l) how often the borrower will receive statements of account; and
(m) a telephone number in accordance with subsection 42(3).
41(2)A credit grantor does not contravene subsection (1) by reason only of failing to ensure that the credit limit referred to in paragraph (1)(b) is contained in the initial disclosure statement if the credit grantor ensures that the credit limit is disclosed
(a) in the first statement of account delivered to the borrower, or
(b) in a separate statement delivered to the borrower on or before the date on which the borrower receives the first statement of account.
41(3)A credit grantor does not contravene subsection (1) by reason only of failing to ensure that information that relates to a specific transaction under the credit agreement or that information referred to in paragraph (1)(i) about optional services is contained in the initial disclosure statement if the credit grantor ensures that the information is disclosed in a separate document delivered to the borrower before the transaction occurs or the optional services are provided.
2008, c.12, s.6; 2016, c.40, s.1
Statement of account
42(1)Subject to subsection (2), the credit grantor shall deliver to the borrower, at least monthly, a statement of account that contains the following information:
(a) the period covered by the statement, which period shall run from the date of the first advance or, if a statement of account has been delivered under this section, from the date of the statement of account most recently delivered to the borrower;
(b) the outstanding balance at the beginning of the period covered by the statement;
(c) the amount, description and posting date of each transaction or charge added to the outstanding balance during the period covered by the statement;
(d) the amount and posting date of each payment or credit subtracted from the outstanding balance during the period covered by the statement;
(e) the annual interest rate or rates in effect during the period covered by the statement or any part of the period;
(f) the total of all amounts added to the outstanding balance during the period covered by the statement;
(g) the total of all amounts subtracted from the outstanding balance during the period covered by the statement;
(h) the outstanding balance at the end of the period covered by the statement;
(i) the credit limit;
(j) the minimum payment;
(k) the due date for payment;
(l) the amount that the borrower must pay on or before the due date in order to take advantage of a grace period;
(m) the borrower’s rights and obligations regarding the correction of billing errors; and
(n) a telephone number in accordance with subsection (3).
42(2)A credit grantor is not required to send a statement of account to a borrower at the end of any period during which there has been no advance or payment if
(a) the outstanding balance at the end of the period is zero, or
(b) the borrower is in default under the credit agreement and the credit grantor has
(i) demanded payment of the outstanding balance, and
(ii) notified the borrower that the privilege of obtaining advances under the credit agreement has been cancelled or suspended due to the default.
42(3)The credit grantor shall, for the purposes of paragraphs (1)(n) and 41(1)(m),
(a) provide a telephone number that the borrower can call to obtain information about the borrower’s account during the credit grantor’s normal business hours without incurring any charges for the call, and
(b) the credit grantor shall ensure that the information is available at the telephone number during those hours.
42(4)A transaction is sufficiently described for the purposes of paragraph (1)(c) if the description in the statement of account, along with any 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.
Credit card may only be issued on application
43A credit card issuer shall not issue, deliver or cause to be delivered a credit card to an individual who has not applied for the card unless the credit card that is issued to the individual is to replace or renew a credit card that was applied for and issued to that individual.
Application for credit card
44(1)A credit card issuer shall ensure that the application form for a credit card contains the following information respecting the credit agreement in relation to the credit card:
(a) if the interest rate under the credit agreement is not a floating rate, the annual interest rate;
(b) if the interest rate under the credit agreement is a floating rate, the index rate and the relationship between the index rate and the annual interest rate;
(c) the details of any grace period;
(d) the nature and amount of any non-interest finance charges that are payable or may become payable by the credit card holder; and
(e) the date as of which the information referred to in paragraphs (a) to (d) is current.
44(2)A credit card issuer does not contravene subsection (1) by reason only of failing to ensure that the application form contains the information referred to in paragraphs (1)(a) to (e) if the application form states a telephone number that the individual may call during the credit card issuer’s normal business hours, without incurring any charges for the call, to obtain the information referred to in paragraphs (1)(a) to (e), and the credit card issuer ensures that
(a) the categories of the information available at the telephone number for the purposes of this subsection appear on the application form, and
(b) the information referred to in paragraphs (1)(a) to (e) is available at the telephone number during the credit card issuer’s normal business hours.
44(3)Where a credit card issuer communicates directly with an individual, whether in person or by mail, telephone or any electronic means, for the purpose of inviting the individual to apply for a credit card, the credit card issuer shall disclose in the communication the information referred to in paragraphs (1)(a) to (e).
44(4)A credit card issuer does not contravene subsection (3) by reason only of failing to disclose the information referred to in paragraphs (1)(a) to (e) if, in the communication, the credit card issuer discloses a telephone number that the individual may call during the credit card issuer’s normal business hours, without incurring any charges for the call, to obtain the information referred to in paragraphs (1)(a) to (e), and the credit card issuer ensures that
(a) the categories of the information available at the telephone number for the purposes of this subsection are disclosed to the individual in the communication, and
(b) the information referred to in paragraphs (1)(a) to (e) is available at the telephone number during the credit card issuer’s normal business hours.
44(5)Notwithstanding subsections (2) and (4), where an individual applies for a credit card in person, by telephone or by any electronic means, the credit card issuer shall disclose the information referred to in paragraphs (1)(a) to (e) when the individual makes the application.
44(6)An individual who applies for a credit card without signing an application form shall be deemed, on using the credit card for the first time, to have entered into a credit agreement in relation to the credit card.
44(7)Nothing in this section relieves the credit card issuer of the requirement to deliver an initial disclosure statement referred to in sections 16, 41 and 45.
2016, c.40, s.1
Additional disclosure for credit card
45(1)In addition to the information required to be disclosed under section 41,
(a) a credit card issuer shall ensure that the initial disclosure statement for a credit agreement in relation to a credit card states the credit card holder’s maximum liability for unauthorized use of the credit card if the credit card is lost or stolen, and
(b) if a credit card holder is required under the credit agreement to pay the outstanding balance on receiving each statement of account, a credit card issuer shall ensure that the initial disclosure statement for the credit agreement in relation to the credit card states
(i) that the outstanding balance is payable on receipt of each statement of account,
(ii) the period after receipt of a statement of account within which the credit card holder must pay the outstanding balance in order to avoid being in default under the agreement, and
(iii) the annual interest rate that will apply to any amount that is not paid when due.
45(2)The credit card issuer shall notify the credit card holder of any change in the information disclosed in the initial disclosure statement for the credit agreement in relation to the credit card,
(a) in the case of any of the following changes, in the next statement of account following the change or in a document that is given to the credit card holder with the next statement of account:
(i) a change in the credit limit;
(ii) a decrease in the interest rate or the amount of any other charge;
(iii) an increase in the length of an interest-free period or grace period; or
(iv) a change in a floating rate, or
(b) in the case of any other change, at least 30 days before the date that the change takes effect.
Liability of credit card holder
46(1)A credit card holder who has, orally or in writing, reported a lost or stolen credit card, or the unauthorized use of the credit card or credit card number, to the credit card issuer is not liable for any debt incurred through the use of that credit card or credit card number after the credit card issuer receives the report.
46(2)The maximum total liability of a credit card holder arising from unauthorized use of a lost or stolen credit card before the credit card issuer receives notice under subsection (1) is the lesser of
(a) $50, and
(b) the maximum amount set by the credit agreement in relation to the credit card.
46(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 or ATM.
VII
LEASE OF GOODS
Definitions
47In this Part
“assumed residual payment” means,(versement résiduel présumé)
(a) in the case of an option lease under which the option price at the end of the term is less than the estimated residual value, the option price, and
(b) in any other case, the sum of the estimated residual value and of any amount that the lessee will be required to pay in the ordinary course of events at the end of the term;
“capitalized amount” means the amount calculated by(montant capitalisé)
(a) adding
(i) the cash value of the leased goods, and
(ii) the amount of any other advances made to the lessee at or before the beginning of the term, and
(b) subtracting from the amount calculated under paragraph (a) the total amount of all payments made by the lessee at or before the beginning of the term, other than
(i) any refundable security deposit, or
(ii) any periodic payment;
“estimated residual cash payment” means the amount that the lessee will be required to pay to the 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; (versement résiduel estimatif en espèces)
“estimated residual value” means the lessor’s reasonable estimate of the wholesale value of the leased goods at the end of the term as estimated by the lessor at the time the lease was entered into; (valeur résiduelle estimative)
“implicit finance charge” means the amount calculated, subject to the conditions and assumptions contained in the regulations, by(frais de financement implicites)
(a) adding
(i) all non-refundable payments required to be made by the lessee at or before the beginning of, or during, the term, and
(ii) the assumed residual payment, and
(b) subtracting from the amount calculated under paragraph (a) the total amount of the advances received by the lessee;
“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; (bail avec option)
“option price” means the amount of the additional payment that the lessee must make in order to exercise the option under an option lease; (prix de l’option)
“realizable value” , in relation to leased goods, means the actual value of the leased goods at the end of the term and is calculated in accordance with the regulations; (valeur marchande)
“residual obligation lease” means a lease under which the lessee will be required at the end of the term to pay the lessor an amount based wholly or partly on the difference, if any, between the estimated residual value and the realizable value of the leased goods; (bail à obligation résiduelle)
“total lease cost” means the total of any non-refundable payments that the lessee will be required to make in the ordinary course of events. (coût total du bail)
Advertisement for lease
48(1)A lessor shall ensure that an advertisement that is published by or on behalf of the lessor and that gives specific information about the cost of a lease contains the following information respecting the lease:
(a) that the transaction is a lease;
(b) the term;
(c) the nature and amount of any payments that are payable by a lessee at or before the beginning of the term;
(d) the amount, timing and number of the periodic payments;
(e) the nature and amount of any other payments that are payable by a lessee in the ordinary course of events;
(f) the APR; and
(g) the limitations, if any, imposed in accordance with the regulations regarding extra charges that may be charged based on usage of the leased goods.
48(2)Notwithstanding subsection (1), a lessor shall ensure than an advertisement on radio, television, a billboard or another medium with similar time or space limitations that gives any specific information about the cost of a lease
(a) contains the information referred to in paragraphs (1)(a) to (d) and (f), or
(b) contains the information referred to in paragraphs (1)(a), (c) and (d) and states
(i) a telephone number at which the information referred to in paragraphs (1)(b) and (f) is available during the lessor’s normal business hours and may be obtained without incurring any charges for the call, or
(ii) a reference to a written publication having general circulation in the area and containing the information referred to in paragraphs (1)(b) and (f).
48(3)Where any of the information required to be disclosed under subsection (1) would not be the same for all leases to which the advertisement relates, the lessor shall ensure that the information is for a representative transaction and is identified as being for a representative transaction.
48(4)For the purposes of subsection (3), a transaction is a representative transaction if its terms are typical of the terms of the leases to which the advertisement relates.
Initial disclosure statement for lease
49(1)A lessor shall ensure that the initial disclosure statement for a lease contains the following information:
(a) the effective date of the statement;
(b) that the transaction is a lease;
(c) a description of the leased goods;
(d) the term;
(e) the cash value of the leased goods;
(f) the nature and amount of any other advance received, and of each charge incurred, by the lessee in connection with the lease at or before the beginning of the term;
(g) the nature and amount of each payment made by the lessee at or before the beginning of the term;
(h) the capitalized amount;
(i) the amount, timing and number of the periodic payments;
(j) the estimated residual value of the leased goods;
(k) for an option lease,
(i) how and when the option may be exercised,
(ii) the option price if the option is exercised at the end of the term, and
(iii) the method of determining the option price if the option is exercised before the end of the term;
(l) for a residual obligation lease,
(i) the estimated residual cash payment, and
(ii) a statement that the lessee’s maximum liability at the end of the term is the sum of
(A) the estimated residual cash payment, and
(B) the estimated residual value less the realizable value of the leased goods;
(m) the circumstances, if any, under which the lessee or the lessor may terminate the lease before the end of the term and the amount, or the method of determining the amount, of any payment that the lessee will be required to make on early termination of the lease;
(n) if there are circumstances under which the lessee will be required to make a payment in connection with the lease and if that payment is not required to be disclosed under paragraphs (a) to (m),
(i) the circumstances, and
(ii) the amount of the payment or the method of determining the amount;
(o) the implicit finance charge;
(p) the APR; and
(q) the total lease cost.
49(2)The circumstances referred to in paragraph (1)(n) include unreasonable wear or excess use of the leased goods.
Disclosure regarding amendment
50(1)If a lease is amended, the lessor shall, within 30 days after the amendment is made, deliver to the lessee a supplementary disclosure statement that meets the requirements of subsection (2).
50(2)A supplementary disclosure statement referred to in subsection (1) shall set out the information that, as a result of the amendment to the lease, is changed from the initial disclosure statement but need not repeat any information that is unchanged from the initial disclosure statement.
50(3)Where an amendment consists only of a revision to the schedule of payments, a supplementary disclosure statement referred to in subsection (1) need not state any change in the APR or any decrease in the implicit finance charge or the total lease cost.
Maximum liability under residual obligation lease
51The lessee’s maximum liability at the end of the term of a residual obligation lease after returning the leased goods to the lessor shall be calculated in accordance with the regulations.
VII.1
RECORD-KEEPING, ADVERTISING AND COMPLIANCE REVIEWS
2016, c.40, s.1
Record-keeping
2016, c.40, s.1
51.1(1)The following definition applies in this section.
“regulatory authority” means a person empowered by the laws of a jurisdiction to regulate the activities of a credit grantor, lessor or credit broker.
51.1(2)A credit grantor, lessor or credit broker shall keep books, records and documents that are necessary for the proper recording of its business and affairs and shall keep any other books, records and documents that are otherwise required under this Act or the regulations.
51.1(3)A credit grantor, lessor or credit broker shall keep the books, records and documents at a safe location and in a durable form.
51.1(4)A credit grantor, lessor or credit broker shall retain the books, records and documents for a minimum period of seven years after the date of the transaction to which the books, records or documents relate.
51.1(5)A credit grantor, lessor or credit broker shall deliver to the Director, or to any other employee of the Commission, at any time that the Director or other employee requires
(a) any of the books, records and documents that are required to be kept by the credit grantor, lessor or credit broker under this Act or the regulations, and
(b) any filings, reports or other communications made to any other regulatory authority.
2016, c.40, s.1
False or misleading advertisement
2016, c.40, s.1
51.11(1)No credit grantor, lessor or credit broker shall make any false, misleading or deceptive statements in any advertisement, circular, pamphlet or similar material prepared or used in respect of a regulated activity.
51.11(2)If, in the opinion of the Director, a credit grantor, lessor or credit broker has made a false, misleading or deceptive statement in any advertisement, circular, pamphlet or similar material, the Director may order the immediate cessation of the use of that material.
51.11(3)The Director may order the immediate cessation of the use of any advertisement, circular, pamphlet or similar material that, in the opinion of the Director, contravenes or fails to comply with this Act or the regulations.
2016, c.40, s.1
Compliance review
2016, c.40, s.1
51.12(1)The Commission may appoint in writing a person as a compliance officer for the purpose of ensuring compliance with this Act and the regulations.
51.12(2)The Commission shall issue to every compliance officer a certificate of appointment and every compliance officer, in the execution of his or her duties under this Act or the regulations, shall produce his or her certificate of appointment on request.
51.12(3)For the purpose of determining whether this Act and the regulations are being complied with, a compliance officer, in carrying out a compliance review, may
(a) enter the premises of any credit grantor, lessor or credit broker during normal business hours,
(b) require a credit grantor, lessor or credit broker or an officer or employee of any of them to produce for inspection, examination, auditing or copying any books, records or documents relating to the business or affairs of the credit grantor, lessor or credit broker,
(c) inspect, examine, audit or copy the books, records or documents relating to the business or affairs of a credit grantor, lessor or credit broker, and
(d) question a credit grantor, lessor or credit broker or an officer or employee of any them in relation to the business or affairs of the credit grantor, lessor or credit broker.
51.12(4)In carrying out a compliance review, a compliance officer may
(a) use a data processing system at the premises where the books, records or documents are kept,
(b) reproduce any book, record or document, and
(c) use any copying equipment at the premises where the books, records or documents are kept to make copies of any book, record or document.
51.12(5)A compliance officer may carry out a compliance review within or outside the Province.
51.12(6)A compliance officer shall not enter a private dwelling under subsection (3) unless the compliance officer has the consent of the occupier or has obtained an entry warrant under the Entry Warrants Act.
51.12(7)Before or after attempting to enter or to have access to any premises, a compliance officer may apply for an entry warrant under the Entry Warrants Act.
51.12(8)The Commission may, in circumstances prescribed by regulation, require a credit grantor, lessor or credit broker in respect of which a compliance review was carried out to pay the Commission any fee prescribed by regulation and to reimburse the Commission for any expenses prescribed by regulation.
2016, c.40, s.1
Removal of documents
2016, c.40, s.1
51.2(1)A compliance officer who removes books, records or documents to make a copy or extract of them or any part of them shall give a receipt to the occupier of the premises for the books, records or documents removed and return the books, records or documents as soon as possible after the making of copies or extracts.
51.2(2)A copy or extract of any book, record or document related to a compliance review and purporting to be certified by a compliance officer is admissible in evidence in any action, proceeding or prosecution and is proof, in the absence of evidence to the contrary, of the original without proof of the appointment, authority or signature of the person purporting to have certified the copy or extract.
2016, c.40, s.1
Misleading statements
2016, c.40, s.1
51.21No person shall knowingly make a false or misleading statement, either orally or in writing, to a compliance officer while the compliance officer is engaged in carrying out his or her duties under this Act or the regulations.
2016, c.40, s.1
Obstruction
2016, c.40, s.1
51.22(1)No person shall obstruct or interfere with a compliance officer who is carrying out or attempting to carry out a compliance review under this Part, or withhold, destroy, conceal, alter or refuse to produce any information or thing reasonably required by a compliance officer for the purposes of the compliance review.
51.22(2)A refusal of consent to enter a private dwelling is not and shall not be considered to be interfering with or obstructing within the meaning of subsection (1), except if an entry warrant has been obtained.
2016, c.40, s.1
VII.2
INVESTIGATIONS
2016, c.40, s.1
Provision of information to Director
2016, c.40, s.1
51.3(1)The Director may make an order under subsection (2)
(a) for the administration of this Act or the regulations, or
(b) to assist in the administration of similar legislation of another jurisdiction.
51.3(2)By an order applicable generally or to one or more persons named or otherwise described in the order, the Director may require any of the following persons to provide information or to produce books, records or documents or classes of books, records or documents specified or otherwise described in the order within the time or at the intervals specified in the order:
(a) a credit grantor, lessor or credit broker; or
(b) a former credit grantor, lessor or credit broker.
51.3(3)The Director may require that the authenticity, accuracy or completeness of information provided or of a book, record or document or a class of books, records or documents produced pursuant to an order under subsection (2) be verified by affidavit.
51.3(4)The Director may require that the information provided or that the books, records or documents or classes of books, records or documents produced pursuant to an order made under subsection (2) be delivered in electronic form, if the information or the books, records or documents or classes of books, records or documents are already available in that form.
2016, c.40, s.1
Investigation order
2016, c.40, s.1
51.31(1)The Commission may, by order, appoint a person as an investigator to make any investigation that the Commission considers expedient
(a) for the administration of this Act or the regulations, or
(b) to assist in the administration of similar legislation of another jurisdiction.
51.31(2)In its order, the Commission shall specify the scope of an investigation to be carried out under subsection (1).
2016, c.40, s.1
Powers of investigator
2016, c.40, s.1
51.32(1)An investigator may, with respect to the person who is the subject of the investigation, investigate, inspect and examine
(a) the business or affairs of that person,
(b) any books, records, documents or communications connected with that person, and
(c) any property or assets owned, acquired or disposed of, in whole or in part, by that person or by a person acting on behalf of or as agent for that person.
51.32(2)For the purposes of an investigation under this Part, an investigator may inspect and examine any book, record, document or thing, whether in possession or control of the person in respect of whom the investigation is ordered or any other person.
51.32(3)An investigator making an investigation under this Part may, on production of the order appointing him or her,
(a) enter the business premises of any person named in the order during normal business hours and inspect and examine any book, record, document or thing that is used in the business of that person and that relates to the order,
(b) require the production of any book, record, document or thing referred to in paragraph (a) for inspection or examination, and
(c) on giving a receipt, remove the book, record, document or thing inspected or examined under paragraph (a) or (b) for the purpose of further inspection or examination.
51.32(4)Inspection or examination under this section shall be completed as soon as possible and the books, records, documents or things shall be returned promptly to the person who produced them.
51.32(5)No person shall withhold, destroy, conceal, alter or refuse to give any information or withhold, destroy, conceal, alter or refuse to produce any book, record, document or thing reasonably required under subsection (3) by an investigator.
2016, c.40, s.1
Power to compel evidence
2016, c.40, s.1
51.4(1)An investigator making an investigation under this Part has the same power to summon and enforce the attendance of witnesses, to compel witnesses to give evidence under oath or in any other manner and to compel witnesses to produce books, records, documents and things or classes of books, records, documents and things as the Court has for the trial of civil actions.
51.4(2)On the application of an investigator to the Court, the failure or refusal of a person to attend, to take an oath, to answer questions or to produce books, records, documents and things or classes of books, records, documents and things in the custody, possession or control of the person makes the person liable to be committed for contempt as if in breach of an order or judgment of the Court.
51.4(3)A person giving evidence at an investigation conducted under this section may be represented by legal counsel.
51.4(4)Testimony given by a person under this section shall not be admitted into evidence against that person in any prosecution other than for perjury in the giving of that testimony or the giving of evidence contradictory to that testimony.
2016, c.40, s.1
Investigators authorized as peace officers
2016, c.40, s.1
51.41Every investigator in carrying out his or her duties under this Act and the regulations is a person employed for the preservation and maintenance of the public peace and has and may exercise all the powers, authorities and immunities of a peace officer as defined in the Criminal Code (Canada).
2016, c.40, s.1
Seized property
2016, c.40, s.1
51.42(1)On request to the investigator by the person who, at the time of the seizure, was in lawful possession of books, records, documents or things seized under this Part, the books, records, documents or things seized shall, at a time and place mutually convenient to the person who was in lawful possession of them at the time of the seizure and the investigator, be made available for consultation and copying by the person.
51.42(2)If books, records, documents or things are seized under this Part and the matter for which the books, records, documents or things were seized is concluded, the investigator shall return those books, records, documents or things to the person who was in lawful possession of them at the time of the seizure within 60 days after the day that the matter is concluded.
51.42(3)If books, records, documents or things are seized under this Part and the person who was in lawful possession of the books, records, documents or things at the time of the seizure alleges that the books, records, documents or things are not relevant in respect of the matter for which they were seized, that person may apply by notice of motion to the Court for the return of the books, records, documents or things.
51.42(4)On a motion under subsection (3), the Court shall order the return of any books, records, documents or things that it determines are not relevant to the matter for which they were seized to the person who was in lawful possession of the books, records, documents or things at the time of the seizure.
2016, c.40, s.1
Report of investigation
2016, c.40, s.1
51.5(1)If an investigation has been made under this Part, the investigator shall, at the request of the Commission, provide a report of the investigation to the Commission or any transcripts of evidence or any material or other things in the investigator’s possession relating to the investigation.
51.5(2)A report that is provided to the Commission under this section is privileged and is inadmissible in evidence in any action or proceeding.
2016, c.40, s.1
Prohibition against disclosure
2016, c.40, s.1
51.51(1)For the purpose of protecting the integrity of an investigation under this Part, the Commission may make an order that applies for the duration of the investigation, prohibiting a person from disclosing to any person other than the person’s lawyer the following information:
(a) the fact that an investigation is being conducted;
(b) the name of any person examined or sought to be examined;
(c) the nature or content of any questions asked;
(d) the nature or content of any demands for the production of any document or other thing; or
(e) the fact that any document or other thing was produced.
51.51(2)An order under subsection (1) does not apply to disclosures authorized by the regulations or by the Director in writing.
51.51(3)An investigator making an investigation under this Part may make, or authorize the making of, any disclosure of information that may be required for the effectual conduct of the investigation.
2016, c.40, s.1
Non-compellability
2016, c.40, s.1
51.52None of the following persons is compellable to give evidence in any court or in any proceeding of a judicial nature concerning any information that comes to the knowledge of the person in the exercise of the powers or performance of the duties of that person in relation to an investigation under this Part:
(a) an investigator;
(b) the Commission;
(c) a member of the Commission;
(d) an employee of the Commission;
(e) a member of the Tribunal; and
(f) a person engaged by the Commission under section 18 of the Financial and Consumer Services Commission Act.
2016, c.40, s.1
VII.3
ENFORCEMENT
2016, c.40, s.1
Offences generally
2016, c.40, s.1
51.6(1)A person who does any of the following commits an offence, and is liable on conviction, for each offence, if an individual, to a fine of not more than $50,000 or to imprisonment for a term of not more than one year, or to both, and if a person other than an individual, to a fine of not more than $250,000:
(a) makes a statement in any information or material submitted, provided, produced, delivered or given to or filed with the Commission, the Director, a compliance officer, an investigator or any person acting under the authority of the Commission or the Director that is misleading or untrue or does not state a fact that is required to be stated or that is necessary to make the statement not misleading;
(b) makes a statement in any information or material required to be submitted, provided, produced, delivered, given or filed under this Act or the regulations that is misleading or untrue or does not state a fact that is required to be stated or that is necessary to make the statement not misleading;
(c) withholds, destroys, conceals, alters or refuses to produce any information or thing reasonably required for the purposes of an administrative proceeding under this Act or the regulations;
(d) contravenes or fails to comply with a provision of this Act that is listed in Schedule A;
(e) contravenes or fails to comply with a decision, ruling, order, temporary order or direction of the Commission, the Director or the Tribunal made or given under this Act or the regulations;
(f) contravenes or fails to comply with a written undertaking made by that person to the Commission, the Director or the Tribunal under this Act or the regulations; or
(g) contravenes or fails to comply with any provision of the regulations.
51.6(2)Without limiting the availability of other defences, no person commits an offence under paragraph (1)(a) or (b) if
(a) the person did not know and in the exercise of reasonable diligence could not have known that the statement was misleading or untrue or that it omitted to state a fact that was required to be stated or that was necessary to make the statement not misleading in light of the circumstances in which it was made, and
(b) on becoming aware that the statement was misleading or untrue or that it omitted to state a fact that was required to be stated or that was necessary to make the statement not misleading, the person notified the Commission.
2016, c.40, s.1
Misleading or untrue statements
2016, c.40, s.1
51.61In carrying on a regulated activity, no person shall make a statement that the person knows or reasonably ought to know is misleading or untrue or does not state a fact that is required to be stated or that is necessary to make the statement not misleading.
2016, c.40, s.1
Interim preservation of property
2016, c.40, s.1
51.62(1)On the application of the Commission, the Tribunal may make one or more of the following orders if the Tribunal considers it expedient for the administration of this Act or the regulations or to assist in the administration of similar legislation of another jurisdiction:
(a) an order directing a person having on deposit or under control or for safekeeping any funds, securities or property to retain the funds, securities or property and to hold them;
(b) an order directing a person to refrain from withdrawing the person’s funds, securities or property from any other person having any of them on deposit or under control or for safekeeping; or
(c) an order directing a person to hold all funds, securities or property of clients or others in the person’s possession or control in trust for any interim receiver, custodian, trustee, receiver, receiver and manager or liquidator appointed under the Business Corporations Act, the Companies Act, the Judicature Act, the Bankruptcy and Insolvency Act (Canada), the Winding-up and Restructuring Act (Canada) or any other Act of the Legislature or of Canada.
51.62(2)An order under subsection (1) that names a financial institution shall apply only to the branches of the financial institution identified in the order.
51.62(3)An order under subsection (1) is effective for seven days after its making, but the Commission may apply to the Court to continue the order or for any other order that the Court considers appropriate.
51.62(4)An order under subsection (1) may be made ex parte but, in that event, copies of the order shall be sent without delay by any means that the Tribunal determines to all persons named in the order.
51.62(5)A person in receipt of an order under subsection (1) who is in doubt as to the application of the order to any funds, securities or property or as to a claim being made to that person by any person not named in the order may apply to the Tribunal for direction or clarification.
51.62(6)The Tribunal, on the application of the Commission or of a person directly affected by the order, may revoke an order under subsection (1) or permit the release of any funds, securities or property in respect of which the order was made.
51.62(7)A notice of an order under subsection (1) may be registered or recorded against the lands or claims identified in the order by submitting the notice to the appropriate registry office established under the Registry Act or to the appropriate land titles office established under the Land Titles Act.
51.62(8)The Tribunal may order a notice submitted under subsection (7) to be revoked or modified and, if an order is made, the Commission shall submit a copy of the revocation or modification to the appropriate registry office or land titles office.
51.62(9)On submission of a notice under subsection (7) or a copy of a written revocation or modification under subsection (8), the notice or the copy of the revocation or modification shall be registered or recorded in the registry office or land titles office, as the case may be, by the registrar and has the same effect as the registration or recording of a certificate of pending litigation.
2016, c.40, s.1; 2023, c.2, s.171
Orders in the public interest
2016, c.40, s.1
51.7(1)On the application of the Commission, the Tribunal, if in its opinion it is in the public interest to do so, may make one or more of the following orders:
(a) an order that the registration granted under Part II be suspended or restricted for the period specified in the order or be cancelled, or that terms and conditions be imposed on the registration;
(b) an order that a licence issued under Part V.1 be suspended or restricted for the period specified in the order or be cancelled, or that terms and conditions be imposed on the licence;
(c) an order that any exemptions contained in this Act or the regulations do not apply to a person permanently or for any period specified in the order;
(d) an order that a person cease conducting all or any regulated activities;
(e) an order that a person submit to a review of the person’s practices and procedures relating to regulated activities and institute any changes directed by the Tribunal;
(f) if the Tribunal is satisfied that this Act or the regulations have not been complied with, an order that any document or statement described in the order
(i) be provided by a person,
(ii) not be provided to a person, or
(iii) be amended to the extent that amendment is practicable;
(g) an order that a person be reprimanded;
(h) an order that a person amend, in the manner specified in the order, any information or material of any kind described in the order that is disseminated to the public;
(i) an order that a person cease contravening or comply with, and that the directors and officers of the person cause the person to cease contravening or to comply with, this Act and the regulations;
(j) if a person has not complied with this Act or the regulations, an order requiring the person to disgorge to the Commission any amounts obtained as a result of the non-compliance.
51.7(2)The Tribunal may impose any terms and conditions that the Tribunal considers appropriate on an order under this section.
51.7(3)A person who is the subject of an order made under this section shall comply with any terms and conditions imposed on the order.
51.7(4)Unless the parties and the Tribunal consent, no order shall be made under this section without a hearing.
51.7(5)Despite subsection (4), if in the opinion of the Tribunal the length of time required to hold a hearing could be prejudicial to the public interest, the Tribunal, without a hearing, may make a temporary order under paragraph (1)(a), (b), (c), (d) or (g).
51.7(6)The temporary order shall take effect immediately and shall expire on the fifteenth day after its making unless extended by the Tribunal.
51.7(7)The Tribunal may extend a temporary order until the hearing is concluded if a hearing is commenced within the 15-day period.
51.7(8)The Commission shall without delay give written notice of an order or temporary order made under this section to any person directly affected by the order or temporary order.
2016, c.40, s.1
Administrative penalty
2016, c.40, s.1
51.71(1)On the application of the Commission and after conducting a hearing, the Tribunal may order a person to pay an administrative penalty of, in the case of an individual, not more than $25,000, and in the case of a person other than an individual, not more than $100,000, if the Tribunal
(a) determines that the person has contravened or failed to comply with this Act or the regulations, and
(b) is of the opinion that it is in the public interest to make the order.
51.71(2)The Tribunal may make an order under this section despite the imposition of any other penalty on the person or the making of any other order by the Tribunal, the Commission or the Director related to the same matter.
2016, c.40, s.1
Directors and officers
2016, c.40, s.1
51.8If a person other than an individual contravenes or has not complied with this Act or the regulations, a director or officer of the person who authorized, permitted or acquiesced in the contravention or non-compliance shall be deemed also to have contravened or not complied with this Act or the regulations, whether or not any proceeding has been commenced against the person under this Act or the regulations or any order has been made against the person under section 51.7.
2016, c.40, s.1
Resolution of administrative proceedings
2016, c.40, s.1
51.81(1)Despite any other provision of this Act or the regulations, an administrative proceeding conducted by the Commission, the Tribunal or the Director under this Act or the regulations may be disposed of by
(a) an agreement approved by the Commission, the Tribunal or the Director, as the case may be,
(b) a written undertaking made by a person to the Commission, the Tribunal or the Director that has been accepted by the Commission, the Tribunal or the Director, as the case may be, or
(c) a decision of the Commission, the Tribunal or the Director, as the case may be, made without a hearing or without compliance with a requirement of this Act or the regulations, if the parties have waived the hearing or compliance with the requirement.
51.81(2)An agreement, written undertaking or decision made, accepted or approved under subsection (1) may be enforced in the same manner as a decision made by the Commission, the Tribunal or the Director under any other provision of this Act or under the regulations.
2016, c.40, s.1
Limitation period
2016, c.40, s.1
51.9No proceeding under this Act or the regulations shall be commenced more than six years after the date of the occurrence of the last event on which the proceeding is based.
2016, c.40, s.1
Prosecution of an offence under section 43
2016, c.40, s.1
51.91In a prosecution of an offence under section 43, the following is proof, in the absence of evidence to the contrary, that the credit card issuer issued the credit card to the individual named in the information:
(a) evidence that the name of the accused credit card issuer appears on the face of a credit card alleged to have been issued to the individual named in the information; and
(b) evidence that the name appearing on the face of the credit card as the name of the individual to whom it was issued is the same name as the individual alleged in the information to have been issued the credit card.
2016, c.40, s.1
Certificate evidence
2016, c.40, s.1
51.92(1)A certificate purporting to be signed by the Director or a person designated by the Commission and containing the following statements is, without proof of the appointment, authority or signature of the person who has signed the certificate, admissible in evidence, and is, in the absence of evidence to the contrary, proof of the facts stated in the certificate:
(a) that a credit grantor, lessor or credit broker is registered or is not registered under Part II;
(b) that the registration of a credit grantor, lessor or credit broker under Part II is suspended or cancelled;
(c) that a payday lender as defined in Part V.1 holds or does not hold a licence under that Part;
(d) that the licence of a payday lender referred to in paragraph (c) is suspended or cancelled under Part V.1; or
(e) that a credit grantor, lessor or credit broker has submitted, provided, produced, delivered, given or filed or has failed to submit, provide, produce, deliver, give or file any information or document required to be submitted, provided, produced, delivered to the Commission or the Director under this Act or the regulations.
51.92(2)A certificate referred to in subsection (1) shall not be received in evidence unless the party intending to produce it has given the person against whom it is to be produced reasonable notice of the intention, together with a copy of the certificate.
51.92(3)A person against whom a certificate referred to in subsection (1) is produced may, with leave of the court, require the attendance of the person who signed the certificate for the purposes of cross-examination.
2016, c.40, s.1
VIII
INVESTIGATIONS AND INSPECTIONS
Repealed: 2016, c.40, s.1
2016, c.40, s.1
Investigations
Repealed: 2016, c.40, s.1
2016, c.40, s.1
52Repealed: 2016, c.40, s.1
2013, c.31, s.11; 2016, c.40, s.1
Inspections
Repealed: 2016, c.40, s.1
2016, c.40, s.1
53Repealed: 2016, c.40, s.1
2013, c.31, s.11; 2016, c.40, s.1
IX
OFFENCES AND PENALTIES
Repealed: 2016, c.40, s.1
2016, c.40, s.1
Offences and penalties
Repealed: 2016, c.40, s.1
2016, c.40, s.1
54Repealed: 2016, c.40, s.1
2016, c.40, s.1
Limitation period
Repealed: 2016, c.40, s.1
2016, c.40, s.1
55Repealed: 2016, c.40, s.1
2016, c.40, s.1
Prosecution of an offence under section 43
Repealed: 2016, c.40, s.1
2016, c.40, s.1
56Repealed: 2016, c.40, s.1
2016, c.40, s.1
Certificate evidence
Repealed: 2016, c.40, s.1
2016, c.40, s.1
57Repealed: 2016, c.40, s.1
2013, c.31, s.11; 2016, c.40, s.1
X
GENERAL AND ADMINISTRATION
False advertising
Repealed: 2016, c.40, s.1
2016, c.40, s.1
58Repealed: 2016, c.40, s.1
2013, c.31, s.11; 2016, c.40, s.1
Provision of security by credit grantor, lessor or credit broker
59(1)This section does not apply in respect of credit agreements in relation to payday loans.
59(2)The Director may require any credit grantor, lessor or credit broker to provide, in accordance with the regulations, a bond or collateral security payable to the Commission.
2008, c.3, s.1; 2013, c.31, s.11; 2014, c.31, s.1
Assignees
60An assignee of a credit grantor’s rights under a credit agreement or a lessor’s rights under a lease has no greater rights than the assignor and takes subject to any defence that the borrower or lessee would have had against the assignor.
Administration of Act
2013, c.31, s.11
61The Commission is responsible for the administration of this Act.
2013, c.31, s.11
Conflict with the Right to Information and Protection of Privacy Act
2008, c.3, s.1; 2014, c.31, s.1
61.1If a provision of this Act is inconsistent or in conflict with a provision of the Right to Information and Protection of Privacy Act, the provision of this Act prevails.
2008, c.3, s.1; 2014, c.31, s.1
XI
REGULATIONS
Regulations
62(1)The Lieutenant-Governor in Council may make regulations
(a) defining “high-ratio mortgage” and “mortgage loan” for the purposes of this Act, the regulations or both;
(b) respecting the APR, including the calculation of the APR;
(c) respecting the calculation of the realizable value;
(d) respecting the conditions and assumptions to which the calculation of the total cost of credit or implicit finance charge is subject;
(e) for the purposes of paragraph 1(3)(i), prescribing things that constitute value received or to be received;
(f) for the purposes of paragraph 1(4)(c), prescribing things that do not constitute value received or to be received;
(g) for the purposes of paragraph 1(5)(c), prescribing things that constitute value given or to be given;
(h) for the purposes of section 6, exempting a credit grantor, lessor or credit broker or a class of credit grantors, lessors or credit brokers from the application of Part II;
(i) exempting any credit agreement or lease or any class of credit agreements or leases from the application of this Act or the regulations or any provision of this Act or the regulations;
(j) respecting requirements for registration of credit grantors, lessors or credit brokers;
(k) for the purposes of paragraph 7(2)(d), prescribing information or documents to be supplied by applicants for registration;
(l) prescribing fees for the registration of a credit grantor, lessor or credit broker for the purposes of paragraph 7(2)(e) and prescribing fees for other matters or services supplied by the Director or the Commission under this Act or the regulations;
(m) for the purposes of section 8, prescribing the period of time during which the registration of a credit grantor, lessor or credit broker remains in effect;
(n) respecting terms and conditions on the registration of a credit grantor, lessor, credit broker or on the suspension or cancellation of the registration of a credit grantor, lessor or credit broker;
(o) respecting the suspension, cancellation or withdrawal of the registration of a credit grantor, lessor or credit broker;
(p) respecting certificates of registration for a credit grantor, lessor or credit broker;
(q) prescribing expenses, charges or fees for the purposes of paragraph 16(3)(a) or (b);
(r) for the purposes of subsection 16(4), respecting the waiver by a borrower of the time period referred to in subsection 16(3), including the terms and conditions on such waiver;
(s) prescribing notices or documents for the purposes of subsection 19(3);
(t) for the purposes of subsection 23(4), respecting the calculation of the portion of each non-interest finance charge that shall be refunded or credited to the borrower;
(u) respecting the limitation of extra charges that may be charged based on usage of leased goods;
(v) for the purposes of section 51, respecting the calculation of the lessee’s maximum liability at the end of the term of a residual obligation lease after returning the leased goods to the lessor;
(v.1) requiring, for the purposes of subsection 51.1(2), that certain books, records or documents be kept;
(v.2) authorizing disclosures for the purposes of subsection 51.51(2);
(v.3) prescribing circumstances, fees and expenses for the purposes of subsection 51.12(8);
(w) for the purposes of section 59, respecting any bond or collateral security that the Director may require to be provided by a credit grantor, lessor or credit broker, including the forfeiture of such bond or collateral security and the disposition of the proceeds of the forfeiture of such bond or collateral security;
(x) respecting communications, contacts, attempted communications or attempted contacts between a credit grantor or lessor and any other person for the purpose of the collection or recovery of a debt owed to a credit grantor by a borrower or to a lessor by a lessee, including prohibiting or limiting such communications, contacts, attempted communications or attempted contacts;
(y) respecting the collection or recovery of a debt owed to a credit grantor by a borrower or to a lessor by a lessee, including, without limiting the generality of the foregoing,
(i) prohibiting the use of any particular method in the collection or recovery of debts by a credit grantor or lessor,
(ii) prescribing the nature and amount of fees and other charges that a credit grantor or lessor may recover or attempt to recover from a borrower or lessee in respect of debt collection activities carried on by the credit grantor or lessor, and
(iii) prohibiting the bringing of any action by a credit grantor or lessor for the recovery of debt in any court of this Province;
(z) respecting the compensation or penalties payable by a lessee on the early termination of a lease;
(aa) respecting the circumstances under which a credit grantor may accelerate payment by the borrower so as to require payment of the outstanding balance of a credit agreement, other than a credit agreement in relation to a mortgage loan;
(aa.1) designating a fee, rate, commission, charge or other amount or consideration as a cheque cashing fee for the purposes of paragraph (b) of the definition “cheque cashing fee” in section 37.1;
(aa.11) designating any division or portion of the Public Service, as defined in the Public Service Labour Relations Act, as a government agency for the purposes of the definition “government agency” in section 37.1;
(aa.12) designating a local government, as defined in subsection 1(1) of the Local Governance Act, as a local government agency for the purposes of the definition “local government agency” in section 37.1;
(aa.13) prescribing Acts for the purposes of subsection 37.11(3);
(aa.14) for the purposes of subsection 37.11(4), exempting any transaction or class of transactions or any person or class of persons from the application of Part V.1 or the regulations relating to that Part or any provision of that Part or the regulations relating to that Part;
(aa.15) respecting licences under Part V.1, including, without limiting the generality of the foregoing,
(i) applications for licences and for renewals of licences,
(ii) qualifications of, and requirements to be satisfied by, applicants and payday lenders,
(iii) information and documents to be provided to the Director by applicants and payday lenders,
(iv) licence fees and licence renewal fees, and
(v) the terms and conditions of a licence;
(aa.151) respecting Internet payday loans;
(aa.16) for the purposes of section 37.15, respecting bonds and other security, including, without limiting the generality of the foregoing,
(i) the terms, conditions and amount of a bond or other security,
(ii) the forfeiture of bonds and other security and the disposition of proceeds of the forfeiture, and
(iii) the powers and duties of the Director or Commission in respect of bonds and other security;
(aa.18) prescribing the period of time for reapplication for the purposes of section 37.24;
(aa.19) for the purposes of paragraph 37.26(1)(c), respecting the manner of serving notices and other documents;
(aa.191) prescribing a number of days for the purposes of paragraph 37.28(2)(e.1);
(aa.2) for the purposes of paragraph 37.28(2)(s), prescribing terms, information or statements;
(aa.21) for the purposes of subsection 37.28(6), prescribing the information to be contained in a notice of cancellation;
(aa.22) prescribing manner of repayment for the purposes of paragraph 37.29(4)(b);
(aa.23) for the purposes of paragraph 37.29(6)(a), prescribing the information to be contained in a receipt;
(aa.24) for the purposes of subsection 37.29(7), specifying whether a liability or obligation is, or is not, related to a payday loan agreement;
(aa.25) for the purposes of section 37.3, respecting the posting of signs, and the form and content of information to be placed on the signs;
(aa.251) for the purposes of subsection 37.31(1),
(i) fixing the maximum total cost of credit - or establishing a rate, formula or tariff for determining the maximum total cost of credit - that may be charged, required or accepted in respect of a payday loan,
(ii) fixing the maximum amount - or establishing a rate, formula or tariff for determining the maximum amount - that may be charged, required or accepted in respect of any component of the total cost of credit of a payday loan;
(aa.252) for the purposes of section 37.36, fixing a maximum percentage - or establishing a rate, formula or tariff for determining a maximum percentage - of the net pay or other net income of the borrower that must not be exceeded by the amount of credit to be extended under a payday loan agreement;
(aa.253) for the purposes of subsection 37.37(1), fixing the maximum penalty or other amount - or establishing a rate, formula or tariff for determining the maximum penalty or other amount - that may be charged, required or accepted in relation to a default by the borrower under a payday loan;
(aa.26) prescribing prohibited practices for the purposes of section 37.39;
(aa.261) for the purposes of section 37.391, prescribing information and documents that payday lenders are required to provide to the Director and the times at which the information and documents are to be provided;
(aa.262) prescribing late fees for the purposes of section 37.392;
(aa.27) for the purposes of section 37.4, prescribing the minimum working capital that shall be maintained by a payday lender;
(aa.3) prescribing an amount of credit remaining on a cash card for the purposes of paragraph 37.44(2)(a);
(aa.4) for the purposes of Part V.1, respecting the expiry of cash cards and setting minimum terms;
(aa.5) respecting the application of the balance of credit remaining on a cash card as payment towards a payday loan under subsection 37.44(6);
(aa.6) for the purposes of subsection 37.45(2), fixing the maximum amount - or establishing a rate, formula or tariff for determining the maximum amount - that may be charged, required or accepted as a cheque cashing fee;
(bb) respecting forms to be used for the purposes of this Act or the regulations;
(cc) defining any word or expression used but not defined in this Act for the purposes of this Act, the regulations or both;
(dd) generally for the better administration of this Act.
62(2)A regulation may be general or particular in its application and may vary for or be made in respect of different credit grantors, lessors or credit brokers or different classes of credit grantors, lessors or credit brokers.
62(3)Without limiting paragraph (1)(aa.151), a regulation made under that paragraph may extend, modify or limit the application of any provision of Part V.1 in relation to an Internet payday loan.
2008, c.3, s.1; 2008, c.12, s.7; 2013, c.31, s.11; 2014, c.31, s.1; 2016, c.5, s.1; 2016, c.40, s.1; 2017, c.20, s.181
XII
TRANSITIONAL
Registrations under the previous Act
63(1)In this section
“previous Act” means the Cost of Credit Disclosure Act, chapter C-28 of the Revised Statutes, 1973, as it existed immediately before the commencement of this Act, and New Brunswick Regulation 83-180 as that regulation existed immediately before the commencement of this Act. (loi antérieure)
63(2)A registration granted under the previous Act and in effect immediately before the commencement of this Act shall be deemed to be a registration under Part II of this Act, and the registration remains in effect, unless withdrawn, suspended or cancelled under this Act, until such time as the registration would have expired under the previous Act.
Existing credit agreements
64(1)Sections 2, 18, 19, 20, 21, 22, 23, 24, 25, 36, 37, 42 and 46 apply in respect of any credit agreement entered into by a credit grantor in the ordinary course of carrying on a business before the commencement of this Act.
64(2)For the purposes of subsection (1), paragraph 42(1)(a) shall be read as follows:
(a) the period covered by the statement, which period shall run from the commencement of this Act, or if a statement of account has been delivered under this section, from the date of the statement of account most recently delivered to the borrower;
Existing leases
65Sections 2, 21 and 22, paragraphs 24(1)(a) and (c), subsection 24(3) and section 25 apply in respect of any lease entered into by a lessor in the ordinary course of carrying on a business before the commencement of this Act.
XIII
CONSEQUENTIAL AMENDMENTS
Consumer Product Warranty and Liability Act
66Section 20 of the Consumer Product Warranty and Liability Act, chapter C-18.1 of the Acts of New Brunswick, 1978, is repealed and the following is substituted:
20(1)The buyer may reject the product under section 16 notwithstanding that the buyer has granted a security interest in the product to a third person, unless the amount outstanding on the security agreement exceeds any amount that the buyer is entitled to recover from the seller under section 17.
20(2)Where the buyer has granted a security interest in the product to a third person, the seller may exercise the buyer’s rights under section 23 of the Cost of Credit Disclosure Act on behalf of the buyer.
20(3)The buyer is liable to the seller for any payments, except finance charges, that the seller makes under subsection (2) and the seller may treat such payments as a refund of payments to the buyer for the purposes of sections 17 and 18.
Direct Sellers Act
67Subparagraph 9(1)j)(ii) of the French version of Regulation 84-151 under the Direct Sellers Act is amended by striking out “divulgation du coût du crédit conformément à la Loi sur la divulgation du coût du crédit” and substituting “communication du coût du crédit conformément à la Loi sur la communication du coût du crédit”.
XIV
REPEAL
Cost of Credit Disclosure Act
68(1)The Cost of Credit Disclosure Act, chapter C-28 of the Revised Statutes, 1973, is repealed.
68(2)New Brunswick Regulation 83-180 under the Cost of Credit Disclosure Act is repealed.
XV
COMMENCEMENT
Commencement
69This Act or any provision of it comes into force on a day or days to be fixed by proclamation.
SCHEDULE A
Number of provision
6(1)
6(2)
6(3)
6(4)
10(1)(a)
10(1)(b)
10(2)(a)
10(2)(b)
10(3)(a)
10(3)(b)
15(2)
15(3)
16(1)
16(2)
16(3)
17
18(1)
19(4)
21(2)
23(3)
24(1)
26(5)
27(2)
27(3)
27(9)
29
30(2)
30(3)
30(5)
32(1)
32(2)
33(1)
33(2)
34(1)
35(2)
36(1)
36(2)
36(3)(a)
36(5)
37
37.12(1)
37.12(2)
37.17(3)
37.18(a)
37.18(b)
37.28(1)
37.28(2)
37.28(3)
37.28(5)
37.28(6)
37.29(6)(a)
37.29(8)
37.3(1)
37.31(1)
37.32(a)
37.32(b)
37.32(c)
37.33
37.34(1)
37.35
37.36
37.37(1)
37.38(3)
37.381
37.39
37.391
37.4
37.44(4)
37.44(5)
37.45(2)
39
41(1)
42(1)
42(3)
43
44(1)
44(3)
44(5)
45(1)(a)
45(1)(b)
45(2)(a)
45(2)(b)
48(1)
48(2)
48(3)
49(1)
50(1)
51.1(2)
51.1(3)
51.1(4)
51.1(5)(a)
51.1(5)(b)
51.11(1)
51.21
51.22(1)
51.32(5)
51.61
51.7(3)
2008, c.12, s.8; 2016, c.40, s.1
N.B. This Act was proclaimed and came into force September 15, 2010.
N.B. This Act is consolidated to June 16, 2023.