P-40.1, r. 3 - Regulation respecting the application of the Consumer Protection Act

Section 36 Disposition versions

2019-08-01

36. An open credit contract other than that entered into for the use of a credit card must contain, in addition to the clauses prescribed by sections 61.0.10 and 61.0.11, the following compulsory clause:

“Clause required under the Consumer Protection Act.

(Open credit contract other than that entered into for the use of a credit card)

(1)  If the consumer uses all or part of the credit extended to make full or partial payment for the purchase or the lease of goods or for a service, the consumer may, if the open credit contract was entered into on the making of and in relation to the sale, lease or service contract, and if the merchant and the open credit merchant collaborated with a view to granting credit, plead against the lender any ground of defence urgeable against the merchant who is the vendor, lessor, contractor or service provider.

The consumer may also, in the circumstances described in the first paragraph, exercise against the open credit merchant, or against the merchant’s assignee, any right exercisable against the merchant who is the vendor, lessor, contractor or service provider if that merchant is no longer active or has no assets in Québec, is insolvent or is declared bankrupt. The open credit merchant or the merchant’s assignee is then responsible for the performance of the obligations of the merchant who is the vendor, lessor, contractor or service provider up to the amount of, as the case may be, the debt owed to the open credit merchant at the time the contract is entered into, the debt owed to the assignee at the time it was assigned to him or the payment the open credit merchant received if he assigned the debt.

(2)  A consumer who is solidarily liable with another consumer for the obligations arising from an open credit contract is released from the obligations resulting from any use of the open credit account after notifying the merchant in writing that he will no longer use the credit extended and no longer intends to be solidarily liable for the other consumer’s future use of the credit extended in advance, and after providing proof to the merchant, on that occasion, that he informed the other consumer by sending him a written notice to that effect at his last known address or technological address.

Any subsequent payment made by the consumer must be applied to the debts contracted before the notice was sent to the merchant.

(3)  Without delay at the end of each period, the merchant must send the consumer a statement of account. The merchant is not required to send a statement of account to the consumer at the end of any period if there have been no advances or payments during the period and the outstanding balance at the end of the period is zero.

(4)  If the consumer makes a payment at least equal to the outstanding balance at the end of the preceding period within 21 days after the date of the end of the period, no credit charges may be required from the consumer on that outstanding balance, except as regards money advances. In the case of a money advance, charges may accrue as of the date of the advance until the date of payment.

(5)  The consumer may demand that the merchant send, without charge, a copy of the vouchers for each of the transactions charged to the account during the period covered by the statement. The merchant must send the copy of the vouchers requested within 60 days after the date the consumer’s request was sent.

(6)  Until the consumer receives a statement of account at his address or technological address if expressly authorized by the consumer, the merchant must not claim credit charges on the unpaid balance, except as regards money advances.

It is in the consumer’s interest to refer to sections 103.1, 122.1, 126, 126.2, 126.3, 127 and 127.1 of the Consumer Protection Act (chapter P-40.1) and, if further information is necessary, to contact the Office de la protection du consommateur.”.

R.R.Q., 1981, c. P-40.1, r. 1, s. 36; O.C. 994-2018, s. 21.

2012-09-01

36. A contract extending variable credit other than that entered into for the use of a credit card must contain, in addition to the clauses prescribed in Schedule 4 of the Act, the following compulsory clause:

“Clause required under the Consumer Protection Act.

(Contract extending variable credit other than that entered into for the use of a credit card)

At the end of each period, the merchant, if he has a claim with respect to a consumer, must furnish the latter with a statement of account mailed at least 21 days before the date on which he may exact credit charges if the consumer does not discharge his entire obligation; credit charges for advances of money may start as of the date of the advance up until the date of payment.

Until the consumer receives a statement of account at his address, the merchant must not exact credit charges on the unpaid balance, except on advances on money.

Where the consumer receives a statement of account, he may require the merchant to forward him, without charge, a copy of the vouchers for each of the transactions described in the statement of account.

It is in the consumer’s interest to refer to sections 126 and 127 of the Consumer Protection Act (chapter P-40.1) and, where necessary, to communicate with the Office de la protection du consommateur.”.

R.R.Q., 1981, c. P-40.1, r. 1, s. 36.