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"Point in Time" Regulation Content

Consumer Protection Act

Consumer Protection Act Regulation

B.C. Reg. 62/87

 Regulation BEFORE repealed by BC Reg 274/2004, effective January 1, 2005.

B.C. Reg. 62/87
O.C. 424/87
Deposited March 16, 1987

Consumer Protection Act

Consumer Protection Act Regulation

 Interpretation

1  (1)  In this regulation:

"Act" means the Consumer Protection Act;

"annual percentage rate" means the annual percentage rate calculated in accordance with the Cost of Borrowing Disclosure Regulation (SOR/83-103) made pursuant to the Bank Act (Canada);

"executory contract" for the purpose of section 10 of the Act and these regulations does not include

(a) a purchase of goods or services pursuant to a variable credit agreement, or by means of a credit card, or

(b) a contract in which the total consideration, excluding the cost of borrowing, is less than $50;

"line of credit" includes an arrangement between a savings institution and a borrower respecting the overdrawing of his account.

(2)  For the purposes of section 61 (b) of the Act, "prime rate" means the prime lending rate of the banker to the government.

 Repealed

2-3  Repealed. [B.C. Reg. 274/2004, Sch. 3, s. 2.]

 Repealed

3.1  Repealed. [B.C. Reg. 441/99, App. 1, s. 2.]

 Cost of borrowing disclosure

4  (1)  Where a lender extends credit, other than variable credit, and the annual percentage rate is not subject to change during the extension of credit, he shall furnish the following information in writing before extending credit:

(a) individually, every matter that is referred to in the definition of principal sum in the Act and that is applicable to the transaction;

(b) the annual percentage rate;

(c) the cost of borrowing expressed as one sum in dollars and cents;

(d) if under the agreement any additional charges may be imposed in the event of default, the basis on which those additional charges will be determined;

(e) all additional charges and the services for which they are charged.

(2)  Where a lender extends credit, other than variable credit, and the annual percentage rate is subject to change during the extension of credit, the lender shall furnish the following information in writing before extending credit:

(a) the annual percentage rate at the date of the transaction;

(b) an estimate of the cost of borrowing expressed as one sum in dollars and cents and determined by using the annual percentage rate existing at the date of the transaction;

(c) a statement that the annual percentage rate is subject to change;

(d) the conditions under which the annual percentage rate will change;

(e) whether a change in the annual percentage rate will result in a change in the amount of a periodic payment or in the length of the term of the transaction, and the manner in which such changes will occur;

(f) the items set out in subsection (1) (a), (d) and (e).

(3)  Where an annual percentage rate in a lending transaction, other than variable credit, is subject to change, the lender shall notify the debtor of a change in the rate within a reasonable time after the change occurs

(a) by mailing a written notice to the debtor, or

(b) by posting a notice in a readily accessible place at the lender's place of business.

(4)  A lender who extends credit at an annual percentage rate that is subject to change by reference to a rate that is readily ascertainable by a reasonable borrower is exempt from subsection (3).

(5)  Where a lender extends credit, other than variable credit, he shall disclose the information required to be disclosed by section 41of the Act and this section by providing the borrower with the information in a manner that is prominent, clear and easily understood by a reasonable borrower

(a) as part of the written agreement under which credit is extended, or

(b) in a written statement given to the borrower at the time the agreement is entered into.

(6)  A lender, who extends credit

(a) by way of a loan that is payable on demand or by way of an arranged line of credit, or

(b) to a person to assist the person in obtaining post secondary education, by way of a loan that is guaranteed by the Government of British Columbia or Canada,

is exempt from sections 41 (1) (c) and 42 (a) (i) and (b) (i) of the Act and section 4 (1) (c) and (2) (b) of this regulation.

 Tolerance in disclosure of annual percentage rate

5  Where a lender is required under this regulation to disclose an annual percentage rate, the disclosure shall be accurate to within 1/8 of 1%.

 Variable credit — disclosure of cost of borrowing

6  A lender shall

(a) before he extends or renews variable credit, furnish the debtor with a clear written statement setting forth the cost of borrowing

(i)  as an annual percentage rate that the debtor is required to pay monthly or periodically on the unpaid balance, subject to a minimum payment, if any, and

(ii)  expressed in dollars and cents in an illustrative schedule showing amounts of outstanding balances and the corresponding cost of borrowing for those amounts, and

(b) not less frequently than every 5 weeks during the extension of variable credit, furnish the debtor with a clear statement in writing showing in respect of the period covered by the statement

(i)  the information required under section 42 (b) (ii) to (iv) of the Act,

(ii)  the date of each extension of credit to the debtor during the period,

(iii)  the cost of borrowing, expressed in dollars and cents, charged during the period and as an annual percentage rate, and

(iv)  any payment made by the debtor.

 Pre-payment

7  (1)  For the purposes of section 44 of the Act, the earned cost of borrowing shall be calculated by multiplying the amount prepaid by the number of days that have elapsed since the date of the last payment or the date of the agreement extending credit, as the case may be, and the annual percentage rate and dividing the product obtained by 365.

(2)  Subsection (1) does not apply in respect of a credit obligation where the agreement which extends the credit

(a) arose prior to the coming into force of this regulation, and

(b) provides that the cost of borrowing is precomputed and added to the principal sum.

(3)  The minimum amount of a prepayment for the purposes of section 44 (1) (a) (ii) of the Act is $50.

 Credit advertising

8  No person shall publish an advertisement in respect of credit in terms of a percentage rate unless the advertisement

(a) discloses the full cost of borrowing stated as an annual percentage rate, or

(b) discloses

(i)  the sum to be actually received in cash by a borrower or the actual cash price of the goods,

(ii)  the amount of the down payment, if any,

(iii)  the amount of each installment,

(iv)  the number of installments required to repay the total indebtedness, including the cost of borrowing, and

(v)  the basis of the calculation of the interest, if it is calculated other than monthly.

 Repealed

9-10  Repealed [B.C. Reg. 274/2004, Sch. 3, s. 2.]

 Repealed

11  Repealed. [B.C. Reg. 441/99, App. 1, s. 3.]

 Exclusions

12  (1)  The Act and this regulation do not apply to

(a) Repealed. [B.C. Reg. 274/2004, Sch. 3, s. 2.]

(b) other transactions in which the total consideration, excluding the cost of borrowing, is less than $50 or exceeds $50 000.

(2)  Repealed. [B.C. Reg. 274/2004, Sch. 3, s. 2.]

[am. B.C. Regs. 442/95, App. 2, s. 2; 274/2004, Sch. 3, s. 2.]

Schedules A to D — Repealed

Schedules A and B

Repealed. [B.C. Reg. 274/2004, Sch. 3, s. 2.]

Schedules C, C.1 and D

Repealed. [B.C. Reg. 441/99, App. 1, s. 4.]

[Provisions of the Consumer Protection Act, R.S.B.C. 1996, c. 69, relevant to the enactment of this regulation: sections 11, 12, 14, 25, 55 (13) and 77]