P-40.1 - Consumer Protection Act

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150. In addition to the information that may be required by regulation, a contract involving credit, other than an instalment sale contract, must contain or state the following, presented in conformity with the model prescribed by regulation:
(a)  the nature and object of the contract and, if applicable, a description of the goods;
(b)  the net capital and, if applicable, the cash sale price of the goods and the cash down payment paid by the consumer;
(c)  the credit charges claimed from the consumer and the consumer’s total obligation under the contract;
(d)  the term of the contract;
(e)  the credit rate, specifying, if applicable, that it is subject to change, and the circumstances in which unpaid interest may be capitalized;
(f)  the date on which credit charges begin to accrue, or how that date is determined;
(g)  the amount and due date of each payment;
(h)  the nature of any optional contracts, the charge for such contracts or how it is determined, and a statement that the consumer has a right of resiliation with respect to such contracts;
(i)  a statement that the consumer may, without charges or penalties, prepay all or part of the outstanding balance;
(j)  the existence and the subject matter of any security given to guarantee the performance of the consumer’s obligations; and
(k)  if entering into an insurance contract is a condition for entering into the contract, a statement that the consumer has the right to use an existing insurance policy or to purchase insurance from the insurer and insurance representative of the consumer’s choice, subject to the merchant’s right to disapprove the insurance selected or held by the consumer on reasonable grounds.
If the credit rate is a variable rate, the contract must also contain the following:
(a)  a statement that the credit rate stipulated is the initial rate and that it is subject to change during the term of the contract;
(b)  a description of the reference index used to determine the variable credit rate;
(c)  a description of the mechanics of credit rate changes and of how a change in the credit rate may affect the terms and conditions of payment;
(d)  a clause specifying that the information relating to the terms and conditions of credit is provided for illustrative purposes only, on the basis of the initial credit rate, and that the information may vary with the credit rate; and
(e)  a clause specifying the credit rate starting at which the amount of the scheduled payments will not cover the credit charges based on the initial capital, unless the contract provides for the automatic adjustment of the amount of the payments according to changes in the credit rate.
1978, c. 9, s. 150; 2017, c. 242017, c. 24, s. 38.
150. A contract involving credit, other than a contract of sale by instalment, must reproduce the particulars provided for in Schedule 7, in addition to those prescribed by regulation.
1978, c. 9, s. 150.