P-40.1 - Consumer Protection Act

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125. In addition to the information that may be required by regulation, an open credit contract must contain or state the following, presented in conformity with the model prescribed by regulation:
(a)  the credit limit granted;
(b)  the credit rate or, if it is a variable rate, the initial credit rate;
(c)  the nature of the credit charges and how they are determined;
(d)  the grace period given the consumer to pay outstanding amounts without having to pay credit charges, except as regards money advances;
(e)  if the credit rate is a variable rate, the reference index used to determine the credit rate, the credit rate change mechanics and how a change in the credit rate will affect the terms and conditions of payment;
(f)  the minimum periodic payment or the method of calculating the minimum payment required for each period;
(g)  the length of each period for which a statement of account is provided;
(h)  in the case of a credit card contract, the consumer liability limit in the circumstances described in section 123 and the circumstances in which the consumer may be held liable for the losses incurred by the card issuer;
(i)  the existence and the subject matter of any security given to guarantee the performance of the consumer’s obligations;
(j)  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;
(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; and
(l)  a telephone number that the consumer can use, at no charge, to obtain information about the contract in the language of the contract, or a telephone number that the consumer can use to obtain such information in the language of the contract, together with a clear statement that collect calls are accepted.
1978, c. 9, s. 125; 2017, c. 24, s. 30.
125. Contracts extending variable credit must reproduce the particulars prescribed in Schedule 4, in addition to those prescribed by regulation.
1978, c. 9, s. 125.