Definitions

1   (1) In this Act:

"administrative authority" means the Business Practices and Consumer Protection Authority established under the Business Practices and Consumer Protection Authority Act;

"administrative penalty" means a penalty imposed under section 164;

"associate", if used to indicate a relationship with a person, means

(a) a spouse, parent, child, sibling or business partner of the person, or

(b) a corporation of which a sufficient number of shares to elect a majority of the corporation's directors is beneficially owned, directly or indirectly, by

(i) the person,

(ii) one or more of the persons referred to in paragraph (a), or

(iii) the person and one or more of the persons referred to in paragraph (a);

"compensation fund" means a compensation fund established under section 130 or the Travel Assurance Fund continued under section 130;

"compliance order" means an order issued under section 155 by an inspector;

"consumer" means an individual, whether in British Columbia or not, who participates in a consumer transaction, but does not include a guarantor;

"Consumer Advancement Fund" means the Consumer Advancement Fund established under section 139;

"consumer transaction" means

(a) a supply of goods or services or real property by a supplier to a consumer for purposes that are primarily personal, family or household, or

(b) a solicitation, offer, advertisement or promotion by a supplier with respect to a transaction referred to in paragraph (a),

and, except in Parts 4 and 5, includes a solicitation of a consumer by a supplier for a contribution of money or other property by the consumer;

"direct sales prohibition order" means an order issued under section 156 by the director;

"director", except in reference to a director of a corporation, means, subject to the restrictions specified in a designation, the individual or administrative authority designated under section 175 as director;

"goods" means personal property, fixtures, credit and prepaid purchase cards, but does not include a security as defined in the Securities Act or contracts of insurance under the Insurance Act;

"goods or services" means goods or services or both;

"inspector" means the director or a person designated as an inspector under section 176;

"licence" means a licence issued under section 145 and includes a renewal of the licence;

"payday loan" has the meaning given to it in section 112.01 [definitions];

"prepaid purchase card" has the meaning given to it in section 56.1 [definition];

"private dwelling" means a

(a) a structure that is occupied as a private residence, or

(b) if only part of a structure is occupied as a private residence, that part of the structure;

"property freezing order" means an order made under section 159 (2) by the director;

"publish" means make public in any manner, including by or through any media;

"services" means services, whether or not the services are together with or separate from goods, and includes a membership in a club or organization;

"supplier" means a person, whether in British Columbia or not, who in the course of business participates in a consumer transaction by

(a) supplying goods or services or real property to a consumer, or

(b) soliciting, offering, advertising or promoting with respect to a transaction referred to in paragraph (a) of the definition of "consumer transaction",

whether or not privity of contract exists between that person and the consumer, and includes the successor to, and assignee of, any rights or obligations of that person and, except in Parts 3 to 5 [Rights of Assignees and Guarantors Respecting Consumer Credit; Consumer Contracts; Disclosure of the Cost of Consumer Credit], includes a person who solicits a consumer for a contribution of money or other property by the consumer;

"supply" includes, in respect of the supply of goods or services or real property to a consumer, a sale, lease, assignment, award by chance or other disposition;

"time share contract" means a contract by which the consumer acquires the right to use property, whether or not the property is located in British Columbia,

(a) for a period of time each year or other interval, and

(b) as part of a plan that provides for the use of the property to circulate, in any year or other interval, among persons participating in the plan,

but does not include a time share plan as defined in the Real Estate Development Marketing Act;

"total cost of credit" has the meaning given to it in section 57 [definitions];

"total price" means the total obligation or amount that is payable, given, undertaken or assumed by a consumer under a consumer transaction;

"undertaking" means an undertaking accepted under section 154 by the director.

(2) Subject to subsection (3), the definitions in the Cremation, Interment and Funeral Services Act, except where a contrary definition is set out in this Act or the regulations, apply to this Act.

(3) The definition of "register" in the Cremation, Interment and Funeral Services Act does not apply to this Act.

Application of this Act

2   (1) Parts 6 [Credit Reporting] and 7 [Debt Collection] apply to transactions, matters or things, regardless of whether they involve a consumer.

(2) Except for the following, this Act does not apply to a sale, lease, mortgage of or charge on land or a chattel real:

(a) Parts 2 [Unfair Practices] and 5 [Disclosure of the Cost of Consumer Credit];

(b) section 3 and Parts 3 [Rights of Assignees and Guarantors Respecting Consumer Credit], 8 to 10 [Compensation Funds and Consumer Advancement Fund; Licences; Inspections and Enforcement], 13 [Offences and Penalties] and 14 [Regulations], as those Parts relate to Parts 2 and 5.

Waiver or release void except as permitted

3   Any waiver or release by a person of the person's rights, benefits or protections under this Act is void except to the extent that the waiver or release is expressly permitted by this Act.

Deceptive acts or practices

4   (1) In this Division:

"deceptive act or practice" means, in relation to a consumer transaction,

(a) an oral, written, visual, descriptive or other representation by a supplier, or

(b) any conduct by a supplier

that has the capability, tendency or effect of deceiving or misleading a consumer or guarantor;

"representation" includes any term or form of a contract, notice or other document used or relied on by a supplier in connection with a consumer transaction.

(2) A deceptive act or practice by a supplier may occur before, during or after the consumer transaction.

(3) Without limiting subsection (1), one or more of the following constitutes a deceptive act or practice:

(a) a representation by a supplier that goods or services

(i) have sponsorship, approval, performance characteristics, accessories, ingredients, quantities, components, uses or benefits that they do not have,

(ii) are of a particular standard, quality, grade, style or model if they are not,

(iii) have a particular prior history or usage that they do not have, including a representation that they are new if they are not,

(iv) are available for a reason that differs from the fact,

(v) are available if they are not available as represented,

(vi) were available in accordance with a previous representation if they were not,

(vii) are available in quantities greater than is the fact, or

(viii) will be supplied within a stated period if the supplier knows or ought to know that they will not;

(b) a representation by a supplier

(i) that the supplier has a sponsorship, approval, status, affiliation or connection that the supplier does not have,

(ii) that a service, part, replacement or repair is needed if it is not,

(iii) that the purpose or intent of a solicitation of, or a communication with, a consumer by a supplier is for a purpose or intent that differs from the fact,

(iv) that a consumer transaction involves or does not involve rights, remedies or obligations that differs from the fact,

(v) about the authority of a representative, employee or agent to negotiate the final terms of a consumer transaction if the representation differs from the fact,

(vi) that uses exaggeration, innuendo or ambiguity about a material fact or that fails to state a material fact, if the effect is misleading,

(vii) that a consumer will obtain a benefit for helping the supplier to find other potential customers if it is unlikely that the consumer will obtain the benefit,

(viii) that appears in an objective form such as an editorial, documentary or scientific report if the representation is primarily made to sell goods or services, unless the representation states that it is an advertisement or promotion, or

(ix) to arrange for the consumer an extension of credit for a fee, unless the fee is deducted from the advance, as defined in section 57 [definitions];

(c) a representation by a supplier about the total price of goods or services if

(i) a person could reasonably conclude that a price benefit or advantage exists but it does not,

(ii) the price of a unit or instalment is given in the representation, and the total price of the goods or services is not given at least the same prominence, or

(iii) the supplier's estimate of the price is materially less than the price subsequently determined or demanded by the supplier unless the consumer has expressly consented to the higher price before the goods or services are supplied;

(d) a prescribed act or practice.

Prohibition and burden of proof

5   (1) A supplier must not commit or engage in a deceptive act or practice in respect of a consumer transaction.

(2) If it is alleged that a supplier committed or engaged in a deceptive act or practice, the burden of proof that the deceptive act or practice was not committed or engaged in is on the supplier.

Advertising

6   (1) In this section, "advertiser" means a supplier who publishes advertisements.

(2) An advertiser who, on behalf of another supplier, publishes a deceptive or misleading advertisement is not liable under section 171 [damages recoverable], 172 [court actions respecting consumer transactions] or 189 [offences] if the advertiser proves that the advertiser did not know and had no reason to suspect that its publication would contravene section 5.

(3) An advertiser, for each advertisement accepted, must maintain a record of the name and address of the supplier who provides the advertisement.

Application of this Division

7   Nothing in this Division limits, restricts or derogates from a court's power or jurisdiction.

Unconscionable acts or practices

8   (1) An unconscionable act or practice by a supplier may occur before, during or after the consumer transaction.

(2) In determining whether an act or practice is unconscionable, a court must consider all of the surrounding circumstances of which the supplier knew or ought to have known.

(3) Without limiting subsection (2), the circumstances that the court must consider include the following:

(a) that the supplier subjected the consumer or guarantor to undue pressure to enter into the consumer transaction;

(b) that the supplier took advantage of the consumer or guarantor's inability or incapacity to reasonably protect the consumer or guarantor's own interest because of physical or mental infirmity, ignorance, illiteracy, age or inability to understand the character, nature or language of the consumer transaction, or any other matter related to the transaction;

(c) that, at the time the consumer transaction was entered into, the total price grossly exceeded the total price at which similar subjects of similar consumer transactions were readily obtainable by similar consumers;

(d) that, at the time the consumer transaction was entered into, there was no reasonable probability of full payment of the total price by the consumer;

(e) that the terms or conditions on, or subject to, which the consumer entered into the consumer transaction were so harsh or adverse to the consumer as to be inequitable;

(f) a prescribed circumstance.

Prohibition and burden of proof

9   (1) A supplier must not commit or engage in an unconscionable act or practice in respect of a consumer transaction.

(2) If it is alleged that a supplier committed or engaged in an unconscionable act or practice, the burden of proof that the unconscionable act or practice was not committed or engaged in is on the supplier.

Remedy for an unconscionable act or practice

10   (1) Subject to subsection (2), if an unconscionable act or practice occurred in respect of a consumer transaction, that consumer transaction is not binding on the consumer or guarantor.

(2) If a court determines that an unconscionable act or practice occurred in respect of a consumer transaction that is a mortgage loan, as defined in section 57 [definitions], the court may do one or more of the following:

(a) reopen the transaction and take an account between the supplier and the consumer or guarantor;

(b) despite any statement or settlement of account or any agreement purporting to close previous dealings and create a new obligation, reopen any account already taken and relieve the consumer from any obligation to pay the total cost of credit at a rate in excess of the prevailing prime rate;

(c) order the supplier to repay any excess that has been paid or allowed by the consumer or guarantor;

(d) set aside all or part of, or alter, any agreement made or security given in respect of the transaction and, if the supplier has parted with the security, order the supplier, to indemnify the consumer;

(e) suspend the rights and obligations of the parties to the transaction.

Definition and interpretation

11   (1) In this Division, "unsolicited goods or services" means goods or services that are supplied to a consumer who did not request them, other than

(a) goods or services supplied to a consumer who knew or ought to have known they were intended for delivery to another person,

(b) goods or services for which the supplier does not require payment, or

(c) a prescribed supply of goods or services.

(2) For the purposes of the definition of "unsolicited goods or services", a request for goods or services must not be inferred only from the passage of time or from the consumer's

(a) payment for the goods or services,

(b) use of the goods or services,

(c) request to purchase another similar good or service, or

(d) inaction.

Unsolicited goods or services

12   (1) A consumer has no legal obligation in respect of unsolicited goods or services unless and until the consumer expressly acknowledges to the supplier in writing the consumer's intention to accept the goods or services.

(2) Unless the consumer has given the acknowledgement referred to in subsection (1), the supplier does not have a cause of action for any loss, use, misuse, possession, damage or misappropriation in respect of the goods or services or the value obtained by the use of the goods or services.

(3) Subsections (1) and (2) do not apply to goods supplied to a consumer on a continuing basis under a contract between the consumer and supplier.

(4) If it is alleged that the supplier supplied unsolicited goods or services, the burden of proof that the goods or services were not unsolicited is on the supplier.

Material change resulting in unsolicited goods or services

13   (1) This section does not apply to

(a) a material change in services referred to in section 25 (4) [continuing services contract — cancellation], and

(b) a change to the price of goods or services or a renewal of an existing supply of goods or services if the goods or services are not otherwise changed.

(2) If a consumer is being supplied with goods or services on a continuing basis and there is a material change in the goods or services, or in the supply of the goods or services, the goods or services are deemed to be unsolicited goods or services from the time of the material change unless the supplier is able to establish that the consumer consented to the material change.

(3) Subject to subsection (4), a supplier may rely on a consumer's consent to the material change if that consent is made by any method that permits the supplier to produce evidence to establish the consumer's consent.

(4) A supplier does not establish a consumer's consent by providing notice to the consumer to the effect that the supplier will supply the materially changed goods or services to the consumer unless the consumer instructs the supplier not to supply the goods or services.

Consumer's remedy if unsolicited goods or services

14   (1) A consumer who pays for unsolicited goods or services may give to the supplier a demand, in writing, for a refund from the supplier within 2 years after the consumer first received the goods or services if the consumer did not expressly acknowledge to the supplier in writing the consumer's intention to accept the goods or services.

(2) A demand is sufficient if it indicates, in any way, the intention of the consumer to demand a refund of a payment made for unsolicited goods or services.

(3) If a supplier receives a demand for a refund, the supplier must refund to the consumer, within 15 days after the supplier received the demand, all money received in respect of the unsolicited goods or services.

Assignee's obligations

15   (1) Subject to subsection (2), an assignee of a right of a supplier in a consumer transaction has no greater right than, and is subject to the same obligations as, the assignor respecting the credit given to the consumer.

(2) A consumer must not receive from, and is not entitled to set off against, an assignee of the supplier an amount greater than the balance owing on the contract at the time of the assignment.

Guarantor has same rights as consumer

16   A guarantor may rely on a defence that is available to a consumer in an action commenced by a supplier against the guarantor, whether or not the consumer is a party to the action, but a guarantor must not use the infancy or bankruptcy of the consumer as a defence.

Definitions

17   In this Part:

"continuing services contract" means a future performance contract that provides for the performance of services on a continuing basis and is designated by regulation;

"direct sales contract" means a contract between a supplier and a consumer for the supply of goods or services that is entered into in person at a place other than the supplier's permanent place of business, but does not include any of the following:

(a) a funeral contract, interment right contract or preneed cemetery or funeral services contract;

(b) a contract for which the total price payable by the consumer, not including the total cost of credit, is less than a prescribed amount;

(c) a prepaid purchase card;

"distance sales contract" means a contract for the supply of goods or services between a supplier and a consumer that is not entered into in person and, with respect to goods, for which the consumer does not have the opportunity to inspect the goods that are the subject of the contract before the contract is entered into, but does not include a prepaid purchase card;

"funeral contract" means a contract that provides for funeral services for

(a) an infant who is stillborn, or

(b) a person who is deceased

at the time the contract is entered into;

"future performance contract" means a contract between a supplier and a consumer for the supply of goods or services for which the supply or payment in full of the total price payable is not made at the time the contract is made or partly executed, but does not include any of the following:

(a) a contract for which the total price payable by the consumer, not including the total cost of credit, is less than a prescribed amount;

(b) a contract for the supply of goods or services under a credit agreement, as defined in section 57 [definitions], if the goods or services have been supplied;

(c) a time share contract;

(d) a prepaid purchase card;

"interment right contract" means a contract that provides for a right of interment for human remains or cremated remains in a lot;

"preneed cemetery or funeral services contract" means a future performance contract that provides for cemetery or funeral services for one or more persons who are alive at the time the contract is entered into;

"supply date" means, in respect of a contract, the date on which goods or services will be, or will begin to be, supplied to the consumer.

Application

18   (1) Subject to subsection (2), if a contract meets the definition of more than one type of contract referred to in this Part, all of the applicable provisions in this Part apply to the contract unless a contrary intention appears in this Part.

(2) If there is a conflict or inconsistency between provisions that apply to a contract, the provision that is most beneficial to the consumer applies to the contract.

(3) Part 6.1 applies instead of this Part in respect of any contract for the supply, arrangement, provision or facilitation of a payday loan.

Required contents

19   A direct sales contract, future performance contract or time share contract must contain the following information:

(a) the supplier's name and, if different, the name under which the supplier carries on business;

(b) the supplier's business address and, if different, the supplier's mailing address;

(c) the supplier's telephone number and, if available, facsimile number;

(d) the date on which the contract is entered into;

(e) a detailed description of the goods or services to be supplied under the contract;

(f) an itemized purchase price for the goods or services to be supplied under the contract;

(g) other costs payable by the consumer, including taxes and shipping charges;

(h) if any customs duties, brokerage fees or other additional charges that may apply to the contract cannot reasonably be determined by the supplier, a description of those charges;

(i) a detailed statement of the terms of payment;

(j) the total price under the contract, including the total cost of credit;

(k) if applicable, a description and dollar value of any trade-in;

(l) if credit is extended or arranged by the supplier, a description of the subject matter of any security interest in accordance with Part 5 [Disclosure of the Cost of Consumer Credit];

(m) a notice of the consumer's rights of cancellation, in the prescribed form and manner, if any;

(n) any other restrictions, limitations or other terms or conditions that may apply to the supply of the goods or services;

(o) any other prescribed information.

Direct sales contracts

20   (1) In addition to the information required under section 19, a direct sales contract must contain

(a) the name, in a readable form, of the individual who signs the contract on behalf of the supplier,

(b) the place where the contract is entered into, and

(c) the signatures of

(i) the individual who signs the contract on behalf of the supplier,

(ii) the consumer, and

(iii) if applicable, the guarantor.

(2) Despite section 23 (3) [future performance contract], if that section applies, a supplier must give a copy of the direct sales contract to the consumer at the time the contract is entered into.

(3) A direct sales contract is not binding on a consumer if

(a) the supplier does not give to the consumer a copy of the contract at the time the contract is entered into, or

(b) the supplier requires the consumer to make a down payment in excess of the prescribed amount.

Direct sales contracts — cancellation

21   (1) A consumer may cancel a direct sales contract by giving notice of cancellation to the supplier not later than 10 days after the date that the consumer receives a copy of the contract.

(2) A consumer may cancel a direct sales contract by giving notice of cancellation to the supplier not later than one year after the date that the consumer receives a copy of the contract if one or more of the following applies:

(a) the contract does not meet the requirements of sections 19 and 20 (1) [required contents of contract];

(b) at the time the contract was made, the supplier was under a direct sales prohibition order;

(c) the goods or services to be supplied under the contract are not supplied to the consumer within 30 days of the supply date.

(3) The consumer is not entitled to cancel the contract under subsection (2) (c) if the consumer accepts delivery of the goods or services after the end of the 30-day period described in that subsection.

(4) Despite section 15 (2) [assignee's obligations], if a consumer cancels a direct sales contract under this section, the supplier, within 15 days after the notice of cancellation has been given, must return to the consumer any trade-in received under a trade-in arrangement, or an amount equal to the trade-in allowance.

(5) Despite section 28 (1) [return of goods by consumer on cancellation], if a consumer cancels a direct sales contract under this section, the consumer may retain possession of the goods delivered to the consumer

(a) until all money paid by the consumer is refunded, and

(b) in the case of a trade-in arrangement, until either

(i) the supplier returns to the consumer, in substantially the same condition as when the supplier received them, the goods delivered by the consumer under the trade-in arrangement, or

(ii) an amount equal to the trade-in allowance is paid to the consumer.

(6) If a trade-in or an amount equal to the trade-in allowance is not returned to the consumer as required under subsection (4), the consumer may recover from the supplier as a debt due an amount equal to the trade-in allowance.

(7) If a consumer receives an amount equal to the trade-in allowance, the title of the consumer in respect of the goods delivered by the consumer under the trade-in arrangement, if the title had not already passed from the consumer, vests in the person entitled to them under the trade-in arrangement.

Credit agreement respecting direct sales contract

22   If credit is extended or arranged by the supplier in respect of a direct sales contract,

(a) the credit agreement, as defined in section 57 [definitions], is conditional on the direct sales contract, whether or not the credit agreement is a part of or attached to the direct sales contract, and

(b) if the direct sales contract is cancelled under section 21, the credit agreement is cancelled.

Future performance contract

23   (1) This section does not apply to a future performance contract that is a preneed cemetery or funeral services contract.

(2) In addition to the information required under section 19 [required contents of contract], a future performance contract must contain the following information:

(a) the supply date;

(b) the date on which the supply of the goods or services will be complete;

(c) if there are periodic payments under the contract, the amount of each of the periodic payments.

(3) A supplier must give a copy of the future performance contract to the consumer within 15 days after the contract is entered into.

(4) A future performance contract is not binding on the consumer if

(a) the supplier gives, or offers to give, a rebate, discount or other value to the consumer in consideration of the consumer giving to the supplier the names of prospective consumers, or otherwise aiding the supplier in making a sale to another person, and

(b) the earning of the rebate, discount or other value is contingent on the occurrence of an event after the time the consumer agrees to buy.

(5) A consumer may cancel a future performance contract by giving notice of cancellation to the supplier not later than one year after the date that the consumer receives a copy of the contract if the contract does not contain the information required under subsection (2) and section 19 [required contents of contract].

Continuing services contract — terms

24   (1) In addition to the information required under sections 19 and 23 (2) [required contents of contract], a continuing services contract that provides for a supplier supplying services by reference to a number of hours or a number of sessions must state the period of time, in months, over which the consumer can reasonably expect to receive the services.

(2) The period of time referred to in subsection (1) must not exceed 24 months.

(3) A continuing services contract must not be for a duration, including the cumulative total of all options and rights to extend or renew the contract, of more than 2 years.

(4) Despite subsection (3), a continuing services contract may provide for the consumer renewing the contract by consenting in writing within one month of the expiry of the contract.

(5) For the purpose of subsection (3), all continuing services contracts, except a contract renewed under subsection (4), that

(a) are in effect between the same supplier and the same consumer at the same time, and

(b) provide for the performance of the same or similar services,

whether or not services are being supplied concurrently under 2 or more of the contracts, are deemed to be one contract.

(6) If a contract does not comply with subsection (3),

(a) the contract is not binding on the consumer in respect of the period in excess of 2 years,

(b) the supplier must refund to the consumer, within 15 days after receiving a request from the consumer, all money paid under the contract for the period in excess of 2 years, and

(c) if the supplier does not comply with paragraph (b), the consumer may recover as a debt due all money paid under the contract for the period in excess of 2 years.

(7) In an action by the consumer against the supplier where the supplier fails to comply with subsection (6) (b), the court must enter judgment against the supplier for 3 times the amount of any refund not paid within the time limited by that subsection.

(8) For certainty, this section applies to a contract renewed under subsection (4).

Continuing services contract — cancellation

25   (1) A consumer may cancel a continuing services contract by giving notice of cancellation to the supplier not later than 10 days after the date that the consumer receives a copy of the contract.

(2) A consumer may cancel a continuing services contract by giving notice of cancellation and the reason for the cancellation to the supplier at any time if there has been a material change

(a) in the circumstances of the consumer, or

(b) in the services provided by the supplier.

(3) A material change in the circumstances of the consumer includes, without limitation,

(a) the consumer's death,

(b) a physical, medical or mental disability of the consumer, substantiated in writing by a medical practitioner or nurse practitioner, showing that the consumer's continued participation is unreasonable because of the consumer's condition or is likely to endanger the consumer's health, or

(c) the relocation of the consumer for the remainder of the duration of the contract, or the remainder of the time stated in the contract in accordance with section 24, so that the distance between the consumer and the supplier is more than 30 km greater than when the consumer and the supplier entered into the contract, if the supplier does not provide reasonably comparable alternative facilities for the use of the consumer not more than 30 km from the consumer's new location.

(4) A material change in the services provided by the supplier occurs

(a) when, for reasons that are wholly or partly the fault of the supplier, the services are not completed, or at any time the supplier appears to be unable to reasonably complete the services within the period of time stated by the supplier under section 24,

(b) when the services are no longer available, or are no longer substantially available as provided in the contract, because of the supplier's discontinuance of operation or substantial change in operation, or

(c) when the supplier relocates the supplier's facility so that the distance between the supplier and the consumer is more than 30 km greater than when the supplier and the consumer entered into the contract, and the supplier does not provide reasonably comparable alternative facilities for the use of the consumer not more than 30 km from the consumer's location.

(5) Section 27 [refunds by supplier on cancellation] does not apply to a cancellation under subsection (2).

(6) If a consumer cancels a continuing services contract under subsection (2), the supplier must

(a) within 15 days after the notice of cancellation has been given, refund to the consumer,

(i) in the case of a cancellation under subsection (2) (a), the portion determined in the prescribed manner of all cash payments made under the contract, less a prescribed amount on account of the supplier's costs, or

(ii) in the case of a cancellation under subsection (2) (b), the portion determined in the prescribed manner of all cash payments made under the contract, and

(b) within 30 days after the notice of cancellation has been given, return to the consumer every negotiable instrument executed by the consumer in connection with the contract.

Time share contract

26   (1) Subject to subsection (2), a supplier must give a copy of the time share contract to the consumer at the time the contract is entered into.

(2) Section 48 (1) [copy of distance sales contract] applies to the time share contract if the contract is also a distance sales contract.

(3) A consumer may cancel a time share contract by giving notice of cancellation to the supplier not later than 10 days after the date that the consumer receives a copy of the contract.

(4) Subject to any longer cancellation period prescribed, a consumer may cancel a time share contract by giving notice of cancellation to the supplier not later than one year after the date that the consumer receives a copy of the contract if the contract does not contain the information required under section 19 [required contents of contract].

Refunds by supplier on cancellation

27   Despite section 15 (2) [assignee's obligations], if a contract is cancelled under this Division, the supplier must refund to the consumer,

(a) within 15 days after the notice of cancellation has been given, and

(b) without deduction except as provided for in this Division or in the regulations,

all money received in respect of the contract, whether received from the consumer or any other person.

Return of goods by consumer on cancellation

28   (1) If a direct sales contract, future performance contract or time share contract is cancelled under this Division, the consumer must return any goods received under the contract by delivering the goods to the person named in the contract as the person to whom notice of cancellation may be given or to the business address of the supplier.

(2) Subject to subsection (3), the return of the goods by the consumer under subsection (1) discharges the consumer from any obligation, in respect of the goods, arising under the contract.

(3) If goods are returned by the consumer under subsection (1), the consumer is liable to the supplier for any damage to the goods caused by the failure of the consumer to take reasonable care of the goods.

Definition

29   In this Division:

"preneed trust account" means a trust account established by the supplier with a savings institution in British Columbia;

"provider" means an operator, funeral provider or memorial dealer.

Prohibition on solicitation

30   (1) A supplier must not solicit, offer for sale or sell rights of interment, cemetery services, funeral services or memorials

(a) by mail, electronic mail or facsimile that is addressed to a specific consumer at the consumer's residential address, electronic mail address or facsimile number,

(b) in person at the consumer's place of residence, or

(c) by telephoning the consumer at the consumer's place of residence.

(2) Subsection (1) (b) does not apply to a presentation by a supplier at a consumer's place of residence that was requested at least 24 hours in advance of the presentation by

(a) the consumer, or

(b) a relative or friend of the consumer if that relative or friend is not the supplier or an associate of the supplier.

Requirement for schedule of rates

31   (1) A provider must keep at its business premises a price list that

(a) indicates the current prices for all goods and services that the provider currently offers to supply,

(b) indicates each good or service that is necessarily or usually required if another good or service that the provider currently offers to supply is supplied,

(c) indicates the current amounts of any disbursements or fees that are necessarily or usually required to be paid in connection with any good or service that the provider currently offers to supply,

(d) either

(i) includes the model number, description and manufacturer's name for each of the goods that the provider currently offers to supply, or

(ii) includes a reference to a catalogue or binder that is available to the public on request at the provider's business premises and that contains the information mentioned in subparagraph (i),

(e) expresses each price of a good or service as a fixed charge, an hourly rate, a rate per kilometre or some other unit of compensation, and

(f) clearly states the price list's effective date and the name and address of the provider.

(2) The provider must

(a) display the price list in a place on the business premises that is accessible to members of the public, and

(b) give a copy of the price list to a consumer on request.

Requirement to give accurate information

32   A provider that receives an inquiry respecting the nature or price of cemetery services, funeral services or memorials offered by the provider must

(a) give accurate information respecting the nature and price of the cemetery services, funeral services or memorials,

(b) inform the person making the inquiry of any good or service that is necessarily or usually required in conjunction with the cemetery services, funeral services or memorials to which the inquiry relates,

(c) inform the person making the inquiry of the current amounts of the disbursements or fees that are necessarily or usually required in conjunction with

(i) the cemetery services, funeral services or memorials to which the inquiry relates, and

(ii) any good or service that is necessarily or usually required in conjunction with the cemetery services, funeral services or memorials to which the inquiry relates, and

(d) state specifically what goods and services are included in any price quoted.

Prohibited charges respecting containers

33   A funeral provider or an operator must not charge any fee or disbursement for using or handling a container referred to in section 11 [containers for interment or cremation] of the Cremation, Interment and Funeral Services Act.

Funeral contract

34   (1) A funeral contract must contain the following information:

(a) the information referred to in section 19 [required contents of contract];

(b) the name and address, as applicable, of

(i) the consumer,

(ii) the deceased person or stillborn infant,

(iii) the person who has the right, as determined under section 5 [control of disposition of human remains or cremated remains] of the Cremation, Interment and Funeral Services Act, to control the disposition of the human remains or cremated remains, and

(iv) the funeral director;

(c) the address where the human remains will be sheltered pending disposition;

(d) a statement that embalming is not a legal requirement but may be required in some cases and, if embalming is required, provide a space for the written acknowledgement of that service by the consumer;

(e) if the supplier charges a storage fee for storing cremated remains,

(i) the fee charged by the supplier, and

(ii) a statement that no fee is charged until 60 days after the date of cremation;

(f) any other prescribed information.

(2) Despite sections 23 (3) [future performance contract] and 48 (1) [distance sales contract], if one or both of those sections apply, a supplier must give a copy of the funeral contract to the consumer at the time the contract is entered into.

(3) If the funeral contract provides for specific goods or services and the supplier must substitute other goods or services of equal or greater value for those specified in the contract,

(a) the supplier must inform the consumer, and

(b) the consumer may cancel that part of the funeral contract.

Preneed cemetery or funeral services contract — initial disclosure statement

35   Before a consumer enters into a preneed cemetery or funeral services contract, the supplier must disclose, in writing, the following information:

(a) if under the contract the consumer is required to obtain and maintain insurance and to assign the right to the amount payable under the insurance to the supplier,

(i) the portion of the insurance premiums paid by the consumer that will be refunded if the insurance is cancelled, and

(ii) that sections 38 and 45 [refunds on cancellation] do not apply if the insurance is cancelled;

(b) if under the contract the supplier is to receive money that must be deposited into a preneed trust account, the portion of the price paid by the consumer that will be refunded if the contract is cancelled.

Preneed cemetery or funeral services contract

36   (1) A preneed cemetery or funeral services contract must contain the following information:

(a) the information referred to in section 19 [required contents of contract];

(b) if under the contract the supplier is to receive money that must be deposited into a preneed trust account,

(i) the portion of the price paid by the consumer that will be refunded if the contract is cancelled,

(ii) the name of the savings institution that is the trustee of the preneed trust account, and

(iii) information respecting the administration of the preneed trust account, including information respecting the investment of money in the account;

(c) if the supplier charges a storage fee for storing cremated remains,

(i) the fee charged by the supplier, and

(ii) a statement that no fee is charged until 60 days after the date of cremation;

(d) provide a space for the written acknowledgement by the consumer that the consumer has received the information required by section 35 to be disclosed;

(e) any other prescribed information.

(2) A supplier must give a copy of the preneed cemetery or funeral services contract to the consumer within 15 days after the contract is entered into.

(3) Subject to subsection (4), a consumer may cancel a preneed cemetery or funeral services contract at any time by giving notice of cancellation to the supplier.

(4) The cancellation of a preneed cemetery or funeral services contract by the personal representative of the deceased is subject to section 6 [disposition to be in accordance with preference of deceased] of the Cremation, Interment and Funeral Services Act.

(5) If a consumer fails to make a payment under a preneed cemetery or funeral services contract within 60 days after the payment is due, the supplier may demand payment and give notice that the plan may be cancelled if payment is not received within 30 days from the date the demand and notice were sent to the consumer.

(6) If payment is not received within the 30-day period under subsection (5), the supplier may cancel the contract by giving notice of cancellation to the consumer.

(7) A supplier must not assign a preneed cemetery or funeral services contract except in accordance with the regulations.

Special provisions for right of interment

37   If a contract is a preneed cemetery and funeral services contract and an interment right contract, the contract must clearly indicate that the right of interment is governed by section 43 [interment right contract] with respect to cancellation or refund.

Preneed cemetery or funeral services contracts — refunds on cancellation

38   (1) This section does not apply to

(a) a preneed cemetery or funeral services contract cancelled by the consumer not later than 30 days after the date that the consumer receives a copy of the contract if the supplier did not comply with section 36 (2) [provided copy of contract], and

(b) insurance referred to in section 35 [initial disclosure statement] that is cancelled.

(2) Despite section 45 [refunds by supplier on cancellation] but subject to subsection (3), if a preneed cemetery or funeral services contract is cancelled under section 36 (3) or (6), the supplier must refund to the consumer, within 15 days after the notice of cancellation has been given, the amount required to be deposited in respect of the contract into the preneed trust account.

(3) The supplier may deduct from the refund under subsection (2) the itemized cost of goods if

(a) those goods have been specially preordered under the contract and because of some unique characteristic, personalization or extraordinary cost, the goods cannot be used in the ordinary course of business, or

(b) a vault or liner provided under the contract has been installed in a lot.

(4) Despite section 15 (2) [assignee's obligations], if the supplier must pay a refund to the consumer under subsection (2) in respect of a contract cancelled under section 36 (3), the supplier must pay the consumer, with the refund, interest on the refund at the prescribed rate.

Preneed cemetery or funeral services contract — failure to provide services

39   (1) In this section, "services" means

(a) in respect of cemetery services, the disposition of human remains by interment or cremation, or

(b) in respect of funeral services, the services referred to in paragraph (a), (b) or (c) of the definition of "funeral services" in the Cremation, Interment and Funeral Services Act.

(2) If a supplier fails to provide the services contracted for under a preneed cemetery or funeral services contract when those services are required, the personal representative of the deceased for whom the services were contracted may give notice of the failure to the supplier.

(3) The supplier, within 15 days after the notice under subsection (2) has been given, must

(a) refund all money received in respect of the contract, whether received from the consumer or any other person, without deduction, and

(b) pay interest on the refund at the prescribed rate

to the personal representative.

Money received under contract to be held in trust

40   (1) In this section, "preneed interim account" means an account established by the supplier with a savings institution in British Columbia.

(2) This section does not apply to proceeds of insurance paid to a supplier.

(3) A supplier that receives an amount of money under a preneed cemetery or funeral services contract must deposit, within 5 days of receipt, any of the amount that is not a deduction for selling expenses into a preneed interim account or preneed trust account.

(4) If the supplier deposits money into the preneed interim account, the supplier must

(a) retain in the preneed interim account, until transferred under paragraph (b),

(i) the money, and

(ii) all interest received in relation to that money during the period in which that money is held in the preneed interim account, and

(b) transfer, within 21 days of deposit into the preneed interim account,

(i) into a preneed trust account, any of the money and related interest retained in the preneed interim account that is not a deduction for selling expenses, and

(ii) out of the preneed interim account, any of the money that is a deduction for selling expenses.

(5) A supplier must not deduct for selling expenses more than 20% of the amount of money received under the preneed cemetery or funeral services contract.

(6) The savings institution is the trustee of the preneed trust account established with it and must administer the account

(a) in accordance with the regulations, and

(b) subject to paragraph (a), in accordance with the terms of a written trust agreement between the savings institution and the supplier.

(7) The savings institution must not make a payment out of a preneed trust account except in accordance with this section or to pay the savings institution's fees and expenses.

(8) The savings institution must pay to the supplier the whole or part of any money in the preneed trust account and any interest due on that amount if the supplier gives a written notice to the savings institution that

(a) all or part of the obligations under the preneed cemetery or funeral services contract for which the money is held in the preneed trust account have been discharged, or

(b) the preneed cemetery or funeral services contract for which the money is held in trust has been cancelled.

(9) The savings institution is not liable to the beneficiary of a preneed trust account for any refunds made in response to a notice under subsection (8), unless the savings institution knew, or ought to have known, that the notice was invalid.

(10) The supplier must

(a) give notice to the consumer within 15 days of the first time that money is deposited or transferred into the preneed trust account, and

(b) on the request of the consumer, give the consumer an annual report respecting the money in the preneed trust account paid under the consumer's preneed cemetery or funeral services contract.

Funds exempt from seizure

41   Money paid under a preneed cemetery or funeral services contract is not subject to any process of garnishment, attachment, execution or seizure under any legal process against

(a) the consumer,

(b) the legal representative of the consumer,

(c) the beneficiary,

(d) the legal representative of the beneficiary,

(e) the trustee of the money, or

(f) the supplier obligated to provide the cemetery services or funeral services covered by the contract.

Restrictions on representations respecting right of interment

42   An operator must not offer a right of interment on a representation or inducement of resale at a profit.

Interment right contract

43   (1) An interment right contract must contain the following information:

(a) the information referred to in section 19 [required contents of contract];

(b) the consumer's right to a refund, if any, in respect of a right of interment that is not exercised, including

(i) the terms or conditions under which the refund will be made,

(ii) the amount of the refund or the percentage of the purchase price that is refundable, and

(iii) any other prescribed matter respecting the refund;

(c) if the contract provides for a consumer exercising a right of interment after the development of a lot,

(i) that the right of interment applies to a lot to be developed for later use, and

(ii) the earliest date on which that right of interment may be exercised;

(d) the circumstances under the Cremation, Interment and Funeral Services Act in which the supplier may reclaim a right of interment.

(2) A supplier must give a copy of the interment right contract to the consumer within 15 days after the contract is entered into.

(3) If the supplier does not give the consumer a copy of the interment right contract within 15 days after the contract is entered into, the consumer may cancel the contract by giving notice of cancellation to the supplier not later than 30 days after the date that the consumer receives a copy of the contract.

(4) Subsection (3) does not apply if the interment is scheduled to occur within 10 days after the contract is entered into.

(5) If an error is made in an interment right contract and the lot in which the human remains or cremated remains were to be interred under the contract is unavailable, the operator must

(a) amend the contract to provide for interment of the human remains or cremated remains in another lot that

(i) is of equal or greater value and in a similar location, and

(ii) is acceptable

(A) to the interment right holder, if the person to be interred in the lot is still alive, or,

(B) to the person who, under section 5 [control of disposition of human remains or cremated remains] of the Cremation, Interment and Funeral Services Act, has the right to control the disposition of the human remains or cremated remains of the person, if the person to be interred in the lot is deceased, or

(b) cancel the contract and refund

(i) the full amount of money paid, and

(ii) accrued interest at the prescribed rate.

(6) An operator required to act under subsection (5) must not charge any fee or disbursement in respect of any action taken under subsection (5), including a fee or disbursement to recover any difference in value between the lot in which human remains or cremated remains are to be interred after the contract is amended and any lot in which the remains were to be interred before the contract was amended.

Rights not held by interment right holder

44   An interment right holder does not acquire any right or interest in

(a) the roads, paths and other areas allowing access to and from any lot of a cemetery, mausoleum or columbarium, other than as a means of access, or

(b) the gardens, structures, buildings or other property of a cemetery, mausoleum or columbarium.

Refunds by supplier on cancellation

45   Despite section 15 (2) [assignee's obligations], if all or part of a contract is cancelled under this Division, the supplier must refund to the consumer,

(a) within 15 days after the notice of cancellation has been given, and

(b) without deduction except as provided for in this Division or in the regulations,

all money received in respect of, or in respect of that part of, the contract, whether received from the consumer or any other person.

Disclosure of information

46   (1) A supplier must disclose the following information to a consumer before the consumer enters into a distance sales contract:

(a) the information referred to in sections 19 (a) to (c), (f) to (j) and (n) [required contents of contract] and 23 (2) [required contents of future performance contract];

(b) if available, the supplier's electronic mail address;

(c) a detailed description of the goods or services to be supplied under the contract, including any relevant technical or system specifications;

(d) the currency in which amounts owing under the contract are payable;

(e) the supplier's delivery arrangements, including the identity of the shipper, the mode of transportation and the place of delivery to the consumer;

(f) the supplier's cancellation, return, exchange and refund policies, if any;

(g) any other prescribed information.

(2) The supplier must disclose the information required under subsection (1) in a clear and comprehensible manner.

Distance sales contract in electronic form

47   (1) In this section, "electronic" has the same meaning as in the Electronic Transactions Act.

(2) Before a consumer enters into a distance sales contract that is in electronic form, a supplier must

(a) make the information required under section 46 available in a manner that

(i) requires the consumer to access the information, and

(ii) allows the consumer to retain and print the information, and

(b) provide a consumer with an express opportunity

(i) to correct errors in the contract, and

(ii) to accept or decline the contract.

Copy of distance sales contract

48   (1) A supplier must give a consumer who enters into a distance sales contract a copy of the contract within 15 days after the contract is entered into.

(2) The copy of the distance sales contract given under subsection (1) must contain

(a) the information described in section 46 [disclosure of information],

(b) the consumer's name, and

(c) the date the contract was entered into.

(3) In addition to section 183 (2) [how to give or serve documents generally], the supplier may give a copy of the distance sales contract to the consumer

(a) by sending the copy by electronic mail to the electronic mail address provided by the consumer to the supplier for the provision of information related to the contract, or

(b) by giving the copy by any other manner that enables the supplier to prove that the consumer has received and retained the copy.

(4) A copy of the distance sales contract given in accordance with subsection (3) (a) is deemed to be received on the third day after it is sent.

Cancellation of distance sales contract

49   (1) A consumer may cancel a distance sales contract by giving notice of cancellation to the supplier

(a) not later than 7 days after the date that the consumer receives a copy of the contract if

(i) the supplier does not comply with section 47 [distance sales contract in electronic form], or

(ii) the contract does not comply with section 48 (2) [required contents of contract],

(b) not later than 30 days after the date that the contract is entered into if the supplier does not provide the consumer with a copy of the contract in accordance with section 48 (1),

(c) at any time before the goods or services are delivered if the goods or services to be delivered under the contract are not delivered to the consumer within 30 days of the supply date, or

(d) at any time before the goods or services are delivered if the supply date is not specified in the contract and the supplier does not deliver the goods or services within 30 days from the date the contract is entered into.

(2) If a distance sales contract is cancelled under subsection (1), the following are also cancelled:

(a) any other related consumer transaction;

(b) any guarantee given in respect of the total price under the contract;

(c) any security given by the consumer in respect of the total price under the contract;

(d) if credit is extended or arranged by the supplier in respect of a distance sales contract, the credit agreement, as defined in section 57 [definitions], whether or not the credit agreement is a part of or attached to the distance sales contract.

Refunds by supplier on cancellation

50   If a distance sales contract is cancelled under section 49, the supplier, within 15 days after the notice of cancellation has been given, must refund to the consumer, without deduction, all money received in respect of the contract and in respect of any related consumer transaction, whether received from the consumer or any other person.

Return of goods by consumer on cancellation

51   (1) If a distance sales contract is cancelled under section 49, the consumer must return any goods received under the contract by delivering the goods

(a) to the person or place named in the contract as the person to whom or as the place where notice of cancellation may be given, and

(b) within 15 days after the notice of cancellation has been given or after the goods have been delivered to the consumer, whichever is later.

(2) The consumer must return the goods unused and in the same condition as that in which they were delivered.

(3) The consumer may return the goods by any method that permits the consumer to produce confirmation of the delivery to the supplier.

(4) The supplier must accept the goods returned under subsection (2).

(5) The supplier is responsible for the reasonable cost of returning the goods.

(6) Goods that are returned by the consumer other than by delivery in person are deemed to have been returned at the time the goods are sent.

Consumer's recourse regarding credit card charges

52   (1) In this section, "credit card" and "interest" have the same meaning as in section 57 [definitions].

(2) A consumer who has charged to a credit card all or any part of the total price under a distance sales contract or any related consumer transaction may request the credit card issuer to cancel or reverse the credit card charge and any associated interest or other charges if the consumer has cancelled the contract under section 49 and the supplier has not refunded all money as required under section 50.

(3) The request under subsection (2) must contain the following information:

(a) the supplier's name;

(b) the date the distance sales contract was entered into;

(c) the amount charged to the credit card in respect of the distance sales contract and any related consumer transaction;

(d) a description of the goods or services sufficient to identify them;

(e) the reason for cancellation under section 49, of the distance sales contract;

(f) the date and method of cancellation of the distance sales contract.

(4) The credit card issuer must

(a) acknowledge the consumer's request within 30 days of receiving it, and

(b) if the request meets the requirements of subsection (3), cancel or reverse the credit card charge and any associated interest or other charges within the earlier of

(i) 2 complete billing cycles of the credit card issuer, and

(ii) 90 days.

When goods and services supplied

53   For the purposes of this Part,

(a) a supplier is considered to have supplied the goods if

(i) delivery of the goods was attempted but, at the time of the attempt, the consumer refused delivery, or

(ii) the supplier provided reasonable notice of the delivery and delivery was attempted but did not occur because no person was available to accept delivery for the consumer on the day the delivery was attempted, and

(b) a supplier is considered to have begun delivering the services if

(i) delivery of the services was attempted but, at the time of the attempt, the consumer refused the services, or

(ii) the supplier provided reasonable notice of the delivery and delivery was attempted but did not occur because no person was available to enable the services to begin on the day the delivery was attempted.

How to give notice of cancellation

54   (1) A consumer or supplier may give a notice of cancellation under this Part by any method that permits a person to produce evidence that the consumer or supplier cancelled the contract on a specific date, including

(a) delivering the notice in person, and

(b) sending the notice by registered mail, electronic mail or facsimile, to

(i) the consumer or supplier, as applicable, or

(ii) the postal address, electronic mail address or facsimile number shown in the contract for the person named in the contract as a person to whom notice of cancellation may be given.

(2) A notice of cancellation is sufficient if it indicates, in any way, the intention of the consumer or supplier to cancel the contract and, except in the case of cancellation under sections 21 (1) [direct sales contract — cancellation], 25 (1) [continuing services contract — cancellation] or 26 (3) [time share contract — cancellation], if it states the reason for cancellation.

(3) For the purposes of this section, a notice of cancellation that is given other than by delivery in person is deemed to have been given at the time it is sent.

Recovery of refund

55   If a supplier does not provide a refund as required under Division 2 [direct sales, future performance and time share contracts] or section 50 [distance sales contract], the consumer may recover the refund from the supplier as a debt due.

Cancellation of preauthorized payments

56   If a contract is cancelled under this Part, the supplier must cancel any future payments or charges that have been authorized by the consumer.

Definition

56.1   In this Part, but subject to the regulations, "prepaid purchase card" means a card, written certificate or other voucher or device with a monetary value that is issued or sold to a person in exchange for the future supply of goods or services to a consumer, and includes a gift card and gift certificate, but does not include a cash card as defined in Part 6.1 [Payday Loans] or Part 6.3 [High-Cost Credit Products].

No expiry date

56.2   (1) Except as may be provided by the regulations under section 56.5 [regulations respecting prepaid purchase cards], a supplier must not issue or sell a prepaid purchase card that has an expiry date.

(2) A prepaid purchase card that is

(a) issued or sold with an expiry date in contravention of subsection (1) is redeemable as if it had no expiry date, and

(b) issued or sold without an expiry date is valid until fully redeemed or replaced.

Fees prohibited except as permitted by regulation

56.3   (1) A supplier must not charge a fee to a consumer for anything in relation to a prepaid purchase card, except as may be permitted by the regulations under section 56.5 [regulations respecting prepaid purchase cards].

(2) If a supplier has charged a fee in contravention of subsection (1), the consumer who paid the fee may demand a refund in the amount of the fee by giving written notice to the supplier within one year of the date on which the fee was paid.

(3) A supplier who receives notice under subsection (2) must provide the refund to the consumer within 15 days of receiving the notice.

Information to be provided

56.4   (1) At the time a prepaid purchase card is issued or sold, the supplier must provide the following information to the person to whom the prepaid purchase card is issued or sold:

(a) all restrictions, limitations, terms and conditions imposed in respect of use, redemption or replacement of the prepaid purchase card, including, without limitation, any permitted fee or expiry date;

(b) a description of the way in which a consumer can obtain information respecting the prepaid purchase card, including any remaining balance;

(c) any other information that may be prescribed by regulation for the purpose of this section.

(2) The supplier must provide the information described in subsection (1) in accordance with the regulations, if any, that may be prescribed under section 56.5 [regulations respecting prepaid purchase cards].

Regulations respecting prepaid purchase cards

56.5   The Lieutenant Governor in Council may make regulations as follows:

(a) extending or limiting the meaning of "prepaid purchase card";

(b) exempting classes of prepaid purchase cards and classes of persons who issue, sell or redeem them from the application of all or part of this Part;

(c) governing the use of expiry dates for prepaid purchase cards that are exempt from section 56.2 (1) [no expiry date];

(d) respecting the imposition of restrictions, limitations and other terms and conditions on the issuance, sale, use, redemption and replacement of prepaid purchase cards;

(e) governing the fees, including inactivity fees or service fees, that may be charged in relation to prepaid purchase cards, including prescribing the amount of a fee or a method of determining the amount of a fee and prescribing circumstances in which no fee is payable;

(f) respecting information that must be provided in relation to prepaid purchase cards under section 56.4 [information to be provided], and the form, timing and manner of providing that information.

Definitions

57   (1) In this Part:

"advance", in respect of an advance under a credit agreement, means value received, within the meaning of subsection (2), by the borrower;

"APR" means the annual percentage rate calculated in accordance with the regulations;

"borrower" means a consumer who has entered into, or who is negotiating to enter into, a credit agreement if that consumer, under that agreement, receives or is to receive credit from another party to the agreement, but does not include a guarantor;

"cash customer" means a consumer who buys a product and who provides full payment for the product at or before the time of its receipt;

"cash price", in relation to a product, means,

(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 for which the credit grantor or associate of the credit grantor sells that product to cash customers, or

(ii) if the credit grantor or 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 parties, or

(c) for an advertisement by a credit grantor or an associate of the credit grantor,

(i) the price at which the product is currently offered to cash customers, or

(ii) if the credit grantor or associate of the credit grantor does not currently offer the product to cash customers, the credit grantor's reasonable estimate of the price at which cash customers would buy those goods,

and, for the purpose of determining the amount advanced under a credit agreement, includes discounts, taxes and any other charges payable by a cash customer;

"credit agreement" means an agreement under which credit is extended and includes

(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, and

(b) a renewal of an agreement referred to in this definition;

"credit card" means a card or other device that can be used to obtain advances under a credit agreement for open credit;

"credit grantor" means, subject to a regulation under section 196 (2) (a),

(a) a supplier who entered into, or who is negotiating to enter into, a credit agreement if that supplier, under that agreement, extends or is to extend credit to another party to the agreement, or

(b) if the rights of the supplier referred to in paragraph (a) under the credit agreement are assigned to an assignee, that assignee, on notice of the assignment being given to the borrower unless the assignment was requested by the borrower,

and includes a credit card issuer within the meaning of section 94 [definitions];

"credit sale" means a sale of a product in which the purchase is financed by the seller or manufacturer of the product or by an associate of the seller or manufacturer;

"default charge" means a charge imposed on a borrower who fails to make a payment as it comes due under a credit agreement or who fails to comply with any other obligation under a credit agreement, but does not include interest on an overdue payment;

"fixed credit" means credit under a credit agreement that is not for open credit;

"floating rate" means an interest rate that bears a specified mathematical relationship to an index rate, and includes an interest rate that

(a) is subject to a minimum or maximum rate, 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;

"high-ratio mortgage" means a mortgage of real property under the security of which is advanced an amount that, when added to amounts advanced under mortgages ranking equally with or in priority to the mortgage, exceeds 75% of the value of the real property;

"index rate" means, in relation to a credit agreement, the rate that is specified in the credit agreement and published at least weekly in a manner that provides ready access to the rate by borrowers;

"initial disclosure statement" means, in relation to a credit agreement or lease, the disclosure statement that, under section 66 [disclosure statements must be given], is required for that credit agreement or lease;

"interest" means charges that accrue over time and are determined by applying a rate to an amount that is owing from time to time under a credit agreement;

"interest-free period" means a period, following the making of an advance, during which interest does not accrue on the advance;

"lease" means any agreement for the hire of goods, except an agreement for the hire of goods in connection with a tenancy agreement;

"lessee" means an individual who entered into, or who is negotiating to enter into, a lease if that individual, under that lease, hires or is to hire goods from another party to the agreement;

"lessor" means a person who entered into, or who is negotiating to enter into, a lease if that person, under that lease, leases or is to lease goods to another party to the agreement;

"loan broker" means, subject to a regulation under section 196 (2) (a), a person who, for compensation, arranges, negotiates or facilitates an extension of credit;

"mortgage loan" means a loan of money secured by an interest in real property, but does not include a prescribed loan;

"non-interest finance charge" means any charge that a borrower is required to pay in connection with a credit agreement, other than

(a) interest,

(b) a prepayment charge,

(c) a default charge,

(d) a charge for an optional service,

(e) a charge for a service referred to in subsection (2) (d), (e) or (f), or

(f) in the case of a credit sale, any charge that would also be payable by a cash customer;

"open credit" means credit under a credit agreement if the credit agreement

(a) anticipates multiple advances that are to be made when requested by the borrower in accordance with the agreement, and

(b) does not establish the total amount to be advanced to the borrower under the agreement, although it may impose a credit limit;

"optional service" means a service that is offered to a borrower in connection with a credit agreement and that the borrower does not have to accept in order to enter into the credit agreement;

"outstanding balance" means the total amount owing at any particular time under a credit agreement;

"payment", in respect of a payment under a credit agreement, means value given, within the meaning of subsection (4), by a borrower;

"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 and timing of payments;

"periodic payment" means the payment that, under a credit agreement or a lease, is to be made in respect of each payment period;

"product" means goods or services, but does not include credit;

"security interest" means any interest in property that secures the borrower's obligations under a credit agreement;

"statement of account" means a statement of account referred to in section 92 (1) [statements of account];

"term" means,

(a) in relation to the duration of a credit agreement, except in respect of a credit agreement that is a lease, the period between the first advance and the end of the period in respect of which payments are required under the credit agreement, and

(b) in relation to the duration of a lease, means the period during which the lessee is entitled to retain possession of the leased goods;

"total cost of credit" means the difference between

(a) the payments made or to be made by the borrower in connection with a credit agreement, and

(b) the advance received or to be received by the borrower in connection with the credit agreement, disregarding the possibility of prepayment or default.

(2) 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 under the credit agreement;

(b) the cash price of a product purchased or to be purchased under the credit agreement;

(c) 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 under the credit agreement;

(d) 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 obtained under the credit agreement;

(e) any of the following expenses, if the credit grantor incurred or is to incur the expense for the purpose of arranging, documenting, insuring or securing the credit agreement:

(i) fees 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, conformity to law or location of property that serves as security for a credit agreement, if the borrower is given a report signed by the person providing the professional services and is free to give the report to third persons;

(iii) premiums for

(A) insurance that protects the credit grantor against default on a high-ratio mortgage,

(B) 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, and

(C) any insurance provided or paid for by the credit grantor in connection with a credit agreement if the insurance is optional;

(iv) an application fee for insurance referred to in subparagraph (iii) (A);

(f) service provided or to be provided by the credit grantor to maintain a tax account on a high-ratio mortgage, expressed in the amount of a reasonable fee charged for that service, whether the tax account is required in connection with the credit agreement or is requested by the borrower;

(g) any other thing prescribed for the purposes of this subsection.

(3) Despite subsection (2), 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 or service under subsection (2) (e) or (f), or to a thing prescribed under subsection (2) (g) that is designated by regulation for the purposes of this subsection:

(a) 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;

(b) insurance provided or paid for or to be provided or paid for by the credit grantor in connection with the credit agreement;

(c) any other thing prescribed for the purposes of this subsection.

(4) The following constitute value given or to be given by a borrower in connection with a credit agreement:

(a) money transferred or to be transferred from the borrower to the credit grantor in connection with the credit agreement;

(b) money 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 subsection (2) (e) or (g) would have applied if the expense had been incurred initially by the credit grantor and then charged directly to the borrower,

(ii) is for services provided by a lawyer or notary public chosen by the borrower, or

(iii) is for 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;

(c) any other thing prescribed for the purposes of this subsection.

Application of this Part

58   (1) In this section:

"borrower" includes a lessee;

"credit agreement" includes a lease;

"credit grantor" includes a lessor.

(2) Subject to subsections (3) and (4), this Part applies to a credit agreement if

(a) the borrower is an individual,

(b) the borrower enters into the credit agreement for primarily personal, family or household purposes, and

(c) the credit agreement

(i) is entered into by the credit grantor in the ordinary course of carrying on a business,

(ii) is arranged by a loan broker, or

(iii) is a prescribed credit agreement.

(3) This Part does not apply to the following:

(a) a lease unless the lease

(i) is for a fixed term of 4 months or more,

(ii) is for an indefinite term or is renewed automatically until one of the parties takes positive steps to terminate it, or

(iii) is a residual obligation lease within the meaning of section 100 (1);

(b) a credit agreement if

(i) the credit grantor is provided with a statement, in the credit agreement or other document, to the effect that the borrower has entered into the credit agreement for primarily business purposes,

(ii) the statement is signed by the borrower, and

(iii) the credit grantor believes in good faith that the statement is true;

(c) a credit sale if

(i) the credit sale agreement requires that the full amount of the sale price for the product will be paid by a single payment within a specified period and does not provide for a schedule of interest payments, or of payments of both principal and interest, to apply if the sale price is not paid within that period,

(ii) the credit sale is unconditionally interest-free during the period referred to in subparagraph (i),

(iii) the credit sale is unsecured, apart from any lien on the product that may arise by operation of law,

(iv) the credit sale is not assigned in the ordinary course of the credit grantor's business other than as security, and

(v) the credit sale does not provide for any non-interest finance charges;

(d) a credit agreement exempt by regulation.

(4) For the purposes of credit agreements that are payday loans, Part 6.1 applies instead of Divisions 3 to 9 and section 104 of this Part.

Disclosure in advertisements

59   (1) In this section, "credit grantor" includes a lessor.

(2) For the purpose of applying section 57 [definitions] to this section:

"borrower" includes a lessee;

"credit agreement" includes a lease.

(3) If a credit grantor who publishes an advertisement, or on whose behalf an advertisement is published, is required under this Part, as a result of disclosing certain information in the advertisement, to include other information in the advertisement, the credit grantor must ensure that

(a) if the required information is the APR, the APR is disclosed at least as prominently as is the information that necessitated the inclusion of the APR, and

(b) any other required information is prominently displayed in a clear and comprehensible manner.

Advertising requirements applicable to fixed credit

60   (1) This section applies only to advertisements that

(a) offer credit under a credit agreement that extends fixed credit, and

(b) state the interest rate or amount of any payment.

(2) A credit grantor must ensure that every advertisement published by or on behalf of the credit grantor discloses, in relation to the proposed credit agreement,

(a) the APR, and

(b) the term.

(3) In addition to complying with subsection (2), the credit grantor must ensure that,

(a) if the advertisement is for a credit sale of a specifically identified product, the advertisement discloses the cash price of that product, or

(b) if the advertisement is for a credit sale of a specifically identified product in connection with which a non-interest finance charge is to be payable, the advertisement discloses

(i) the cash price of the product, and

(ii) the total cost of credit.

Advertising requirements applicable to open credit

61   (1) This section applies only to advertisements that offer credit under a credit agreement that extends open credit.

(2) A credit grantor must ensure that every advertisement published by or on behalf of the credit grantor that gives specific information about the cost of open credit must disclose,

(a) [Not in force.]

(b) if the open credit is associated with a credit card,

(i) the current annual interest rate, and

(ii) any initial or periodic non-interest finance charges.

Advertising interest-free periods

62   (1) This section applies to an advertisement to which section 60 [advertising requirements applicable to fixed credit] or 61 [advertising requirements applicable to open credit] applies.

(2) An advertisement that states or implies that no interest is payable for a certain period in respect of a consumer transaction must disclose whether, under the credit agreement, the transaction

(a) has an interest-free period, or

(b) has a grace period.

(3) If, under the credit agreement, the transaction has a grace period, the advertisement must also disclose the conditions under which the interest accrued during the period will be forgiven and,

(a) if the credit agreement extends fixed credit or open credit that is not associated with a credit card, the APR that will apply to the period if those conditions are not met, or

(b) if the credit agreement extends open credit that is associated with a credit card, the annual interest rate that will apply to the period if those conditions are not met.

(4) An advertisement to which subsection (2) applies that does not disclose the information required under subsections (2) (b) and (3) is deemed to represent that the transaction is unconditionally interest-free during the relevant period.

Advertising requirements applicable to leases

63   (1) In this section, "estimated residual cash payment" and "estimated residual value" have the same meaning as in section 100 (1) [definitions].

(2) For the purpose of applying section 57 [definitions] to this section, a reference in that section to "borrower", "cash price", "credit agreement", "credit grantor" or "purchased" is deemed to be a reference to "lessee", "cash value", "lease", "lessor" or "leased", respectively.

(3) Subject to the regulations, a lessor must ensure that every advertisement published by or on behalf of the lessor that gives specific information about the cost of a lease discloses the following information:

(a) a statement that the consumer transaction is a lease;

(b) the term of the lease;

(c) the nature and amount of any payments that are payable by the lessee on 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 lease APR;

(g) if required by regulations under this or any other enactment, prescribed information regarding extra charges based on usage of the leased goods.

Advertising a representative transaction

64   (1) If this Part requires that certain information be included in an advertisement and if that information is different for different credit agreements to which the advertisement relates, the advertisement must disclose that information as it applies to a representative transaction and must identify the transaction as a representative transaction.

(2) For the purposes of subsection (1), a transaction is a representative transaction if its terms are reasonably typical of the terms of the credit agreements to which the advertisement relates.

Definitions

65   In this Division:

"borrower" includes a lessee;

"credit agreement" includes a lease;

"credit grantor" includes a lessor.

Disclosure statements must be given

66   (1) In this section, "business day", in relation to a credit grantor, means a day on which the credit grantor is open for business.

(2) Subject to subsection (3), a credit grantor who has entered into, or who is negotiating to enter into, a credit agreement with a borrower must give the borrower a disclosure statement in relation to the credit agreement before the earlier of

(a) the borrower entering into the credit agreement, and

(b) the borrower making any payment in connection with the credit agreement.

(3) Subject to subsection (4), a credit grantor who has entered into, or who is negotiating to enter into, a credit agreement to provide a mortgage loan to a borrower must give a disclosure statement in relation to the credit agreement 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 mortgage loan, other than an obligation in respect of an expense referred to in section 57 (2) (e) [value received or to be received by a borrower] or a prescribed expense, and

(b) the date on which the borrower makes any payment to the credit grantor in connection with the mortgage loan, other than a payment in respect of an expense referred to in section 57 (2) (e) [value received or to be received by a borrower] or a prescribed expense.

(4) The borrower under a credit agreement referred to in subsection (3) may waive the time period referred to in that subsection subject to and in accordance with any prescribed terms and conditions.

Form of disclosure statements and statements of account

67   (1) A credit grantor who is required to give a disclosure statement or a statement of account under this Part must ensure that the statement

(a) is in writing,

(b) contains the information required under this Part, and

(c) prominently displays that information in a clear and comprehensible manner.

(2) A disclosure statement or a statement of account may be a separate document or part of another document.

Giving of documents if multiple borrowers

68   If there is more than one borrower under a credit agreement, a disclosure statement, notice or other document that, under this Part, is required to be given to the borrower may be given to any one of the borrowers, and the credit grantor is not required to give a separate disclosure statement, notice or other document to each borrower.

Estimates and assumptions

69   Information disclosed under this Part, whether in a disclosure statement or advertisement or otherwise, may be based on an estimate or assumption if

(a) the disclosure depends on information that is not ascertainable by the credit grantor at the time of disclosure, and

(b) the estimate or assumption is reasonable and is clearly identified as an estimate or assumption.

Inconsistency between disclosure statement and credit agreement

70   If information in a disclosure statement is inconsistent with any information or provision set out in the credit agreement, the credit agreement is presumed to incorporate the information or provision that is more favourable to the borrower, unless it is proven that the less favourable information or provision reflects the borrower's actual understanding of the provisions of the agreement.

Borrowers may choose insurer

71   (1) A borrower who is required by a credit grantor to purchase insurance may purchase it from any insurer authorized to provide that type of insurance in British Columbia, except that the credit grantor may reserve the right to disapprove, on reasonable grounds, an insurer selected by the borrower.

(2) A credit grantor who offers to provide or to arrange insurance referred to in subsection (1) must clearly disclose to the borrower in writing, at the time of that offer, that the borrower may, subject to subsection (1), purchase the required insurance through an insurance agent and insurer of the borrower's choice.

Borrowers entitled to mortgage discharge

72   (1) In this section, "revolving mortgage loan" means a mortgage loan that

(a) secures the money owing to the credit grantor under a revolving line of credit, and

(b) enables the borrower to obtain additional advances from the credit grantor following full repayment of the principal and interest owing under the mortgage loan.

(2) The credit grantor must give to the borrower a discharge of the mortgage loan, registrable under the Land Title Act, within 30 days after

(a) the whole amount of principal and interest owing under the mortgage loan has been repaid to the credit grantor, and

(b) if the mortgage loan is a revolving mortgage loan, the borrower has requested a registrable discharge of the mortgage loan from the credit grantor.

(3) A credit grantor must not charge or accept any amount for or in relation to the provision to the borrower of a discharge of mortgage under subsection (2) that exceeds the maximum amount prescribed.

Borrowers may cancel optional services

73   (1) A borrower may cancel an optional service of a continuing nature that is provided by the credit grantor or by an associate of the credit grantor by giving 30 days' notice, or a shorter period of notice as is provided for by the agreement under which the service is provided.

(2) A borrower who cancels an optional service in accordance with subsection (1)

(a) is not liable for charges relating to any portion of the service that has not been provided at the time of the effective date of the cancellation, and

(b) is entitled to a refund of any amount already paid for those charges.

Prepayment of credit

74   (1) This section does not apply to a credit agreement that is a mortgage loan.

(2) A borrower is entitled to prepay the full outstanding balance owing under a credit agreement at any time without incurring any prepayment charge or penalty.

(3) If a prepayment under subsection (2) is made in relation to a credit agreement for fixed credit, the credit grantor must refund or credit to the borrower the prescribed portion of any non-interest finance charges paid by the borrower or added to the outstanding balance.

(4) A borrower is entitled, on any scheduled payment date, or at least monthly, to prepay less than the full outstanding balance owing under a credit agreement for fixed credit, without any prepayment charge or penalty, but, in that event, is not entitled to a refund or credit of any non-interest finance charges.

Default charges

75   A credit grantor must not impose, under a credit agreement, any default charges other than the following:

(a) court ordered costs incurred in collecting or attempting to collect a debt;

(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 default;

(c) reasonable charges that reflect costs incurred by the credit grantor because a cheque or other payment instrument given by the borrower to the credit grantor was dishonoured.

Invitation to defer payment

76   (1) If a credit grantor invites a borrower to defer making a payment that would otherwise be due under a credit agreement, the credit grantor must clearly disclose, in that invitation, whether or not interest will accrue on the unpaid amount during the period for which payment is deferred.

(2) If an invitation referred to in subsection (1) does not disclose whether or not interest will accrue on the unpaid amount during the period for which payment is deferred, the credit grantor is deemed to waive the interest that would otherwise accrue during that period.

Acceleration clauses

77   (1) This section does not apply to a credit agreement that is a mortgage loan.

(2) A credit agreement may provide that, when the borrower is in default or in any other circumstance provided by the credit agreement, the credit grantor may accelerate payment by the borrower so as to require repayment of the whole amount outstanding under the credit agreement.

(3) Subject to subsection (5), if a credit agreement contains the provision referred to in subsection (2) and the credit grantor wishes, in a situation described in subsection (2), to accelerate payment by the borrower, the credit grantor must give written notice to the borrower of the credit grantor's intention to accelerate payment.

(4) The notice referred to in subsection (3) must

(a) be given personally to the borrower or be sent by registered mail to the last known address of the borrower, and

(b) must contain

(i) a description of the default or other circumstances,

(ii) a statement of the amount required to satisfy the borrower's obligations and the applicable rate of interest, and

(iii) a statement that, unless the default or circumstances described have been remedied within 10 days after the notice was given or sent under paragraph (a), the whole amount outstanding under the credit agreement will be due and payable.

(5) The credit grantor must not accelerate payment under this section if

(a) the credit grantor fails to comply with subsections (3) and (4), or

(b) the default by the borrower is remedied within the period specified under subsection (4) (b) (iii).

(6) If there is a conflict between this section and a provision of any other Act, the provision of that other Act prevails.

Definition

78   In this Division, "brokerage fee" means an amount that a borrower pays or agrees to pay to a loan broker in consideration of the loan broker's services in arranging, negotiating or facilitating or attempting to arrange, negotiate or facilitate the extending of credit to the borrower, and includes an amount that is

(a) deducted from the amount of credit that is extended to the borrower under the credit agreement, and

(b) paid to the loan broker by the credit grantor.

Non-business credit grantors

79   If a loan broker secures for a borrower an extension of credit from a credit grantor who does not provide credit in the ordinary course of carrying on business,

(a) the provisions of this Part and the regulations relating to this Part that impose a duty on a credit grantor must be read as imposing that duty on the loan broker rather than on the credit grantor, and

(b) if the borrower pays or is required to pay a brokerage fee, the loan broker must ensure that the initial disclosure statement for the credit agreement

(i) discloses the amount of the brokerage fee, and

(ii) accounts for the brokerage fee in the APR and the total cost of credit.

Business credit grantors

80   (1) If a loan broker secures for a borrower an extension of credit from a credit grantor who provides credit in the ordinary course of carrying on business,

(a) the credit grantor must ensure that the initial disclosure statement for the credit agreement, if the credit grantor deducts a brokerage fee from the advance,

(i) discloses the amount of the brokerage fee, and

(ii) accounts for the brokerage fee in the APR and the total cost of credit, and

(b) the loan broker must give to the borrower, if the loan broker takes a loan application from the borrower and forwards it to the credit grantor,

(i) a disclosure statement containing the information referred to in paragraph (a), and

(ii) any other information that, under this Part, is required to be disclosed in the initial disclosure statement for the credit agreement.

(2) If the loan broker gives the borrower a disclosure statement under subsection (1) (b), the credit grantor may

(a) adopt that disclosure statement as its own disclosure statement, in which case the credit grantor is jointly and severally liable with the loan broker for the contents of that statement, or

(b) elect to give the borrower a separate disclosure statement containing the information that, under this Part, is required to be disclosed.

Definition

81   In this Division, "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.

Application of this Division

82   This Division applies only to credit agreements that extend fixed credit.

Credit sales

83   If fixed credit is extended under a credit sale, the credit grantor must ensure that the credit agreement is a scheduled-payments credit agreement.

Initial disclosure statements for fixed credit

84   A credit grantor who has entered into, or who is negotiating to enter into, a credit agreement must ensure that the initial disclosure statement for that credit agreement discloses the following information:

(a) the effective date of the statement;

(b) for a credit sale, a description of the product;

(c) the outstanding balance after application of 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 accounted for in the outstanding balance disclosed under paragraph (c);

(e) the date on which interest begins to accrue and the details of any grace period;

(f) the annual interest rate and the circumstances under which unpaid interest will be compounded;

(g) 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 the 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;

(h) the nature and amount of any charges, other than interest, that are not disclosed under paragraph (d) but that are payable or will become payable by the borrower in connection with the credit agreement;

(i) the total of all advances made or to be made in connection with the credit agreement;

(j) the APR;

(k) the nature of any default charges provided for by the credit agreement;

(l) a description of the subject matter of any security interest;

(m) for a mortgage loan, a statement of the conditions, if any, under which the borrower may make prepayments, and any charge for prepayment;

(n) for a credit agreement that does not relate to a mortgage loan, a statement that the borrower is entitled to prepay the full outstanding balance at any time without any prepayment charge or penalty and is entitled to make partial payments without penalty on any scheduled payment date or at least monthly;

(o) the nature, amount and timing of payments for any optional services purchased by the borrower for which payments are to be made to or through the credit grantor;

(p) the conditions under which the borrower may terminate services referred to in paragraph (o);

(q) if the credit agreement is a scheduled-payments credit agreement,

(i) the term of the agreement,

(ii) the amortization period if it is longer than the term,

(iii) the amount and timing of any advances to be made after the effective date of the statement,

(iv) the amount and timing of any payments to be made after the effective date of the statement,

(v) the total of all payments to be made in connection with the credit agreement, and

(vi) the total cost of credit;

(r) if the credit agreement is not a scheduled-payments credit agreement,

(i) the circumstances in which the outstanding balance, or any portion of it, must be paid, or

(ii) the specific provisions of the credit agreement that describe those circumstances.

Disclosure regarding changes in interest rate

85   (1) In addition to the disclosure statement required under section 84 [initial disclosure statements for fixed credit], if the interest rate is a floating rate, the credit grantor, at least once every 12 months, must give the borrower a disclosure statement that contains the following information:

(a) the period covered by the statement, which period must run from the date of the disclosure statement most recently given to the borrower under this section or section 84;

(b) the annual interest rate at the beginning and end of that period;

(c) the outstanding balance at the beginning and end of that period;

(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 that period.

(2) In addition to the disclosure statement required under section 84 [initial disclosure statements for fixed credit], if the interest rate is not a floating rate but is subject to change, the credit grantor, within 30 days after the date on which the annual interest rate becomes 1% or more higher than the rate most recently disclosed to the borrower in writing, must give the borrower a disclosure statement that contains the following information:

(a) the date of the statement;

(b) the new annual interest rate and the date the new rate took effect;

(c) the new amount, and timing, of any payments to be made after the date referred to in paragraph (b).

Disclosure regarding increases in outstanding principal

86   (1) In addition to any other documents that the credit grantor must give under this Part to the borrower, the credit grantor must give the borrower a notice in writing in accordance with subsection (2) if

(a) the outstanding principal on a scheduled-payments credit agreement increases as a result 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 outstanding principal, the total amount of the payments the borrower is scheduled to make over a payment period does not cover the interest that will accrue during that payment period.

(2) A notice under subsection (1)

(a) must be given to the borrower, within 30 days after the most recently missed or late payment or default charge imposed, as the case may be, and

(b) must specify

(i) that the outstanding principal has increased, and the reason for that increase, and

(ii) that, because of the increase in principal, the subsequent scheduled payments will not cover the interest that will accrue in each payment period.

Disclosure regarding amendments

87   (1) Subject to subsection (3), if a credit agreement is amended, the credit grantor must give a supplementary disclosure statement to the borrower within 30 days after the amendment is made.

(2) The supplementary disclosure statement must set out the changed information, but need not repeat any information that is unchanged from the previous disclosure statement.

(3) This section does not apply to changes effected by a renewal to which section 88 [disclosure regarding renewals] or 89 [disclosure regarding mortgage loan renewals] applies.

Disclosure regarding renewals

88   (1) A credit grantor who is willing to renew a credit agreement must give the borrower, in accordance with subsection (2), a disclosure statement, based on the assumption that the borrower will make all payments that are due under the current credit agreement, that includes the following information respecting the renewed credit agreement:

(a) the effective date;

(b) the outstanding balance of the credit agreement as of the effective date;

(c) any non-interest finance charges that are payable under or in connection with the credit agreement;

(d) the term of the renewed credit agreement;

(e) the relevant interest rate information referred to in section 84 (f) or (g) [initial disclosure statements for fixed credit];

(f) the APR;

(g) the amount and timing of all payments to be made under or in connection with the renewed credit agreement;

(h) the total of all payments to be made under or in connection with the renewed credit agreement;

(i) the total cost of credit;

(j) the amortization period;

(k) a statement of the conditions, if any, under which the borrower may make prepayments, and any charge for prepayment.

(2) The credit grantor must give the disclosure statement to the borrower

(a) if the credit agreement is a mortgage loan, with the notice referred to in section 89 (1) [disclosure regarding mortgage loan renewals], or

(b) if the credit agreement is not a mortgage loan, on or before the renewal date.

Disclosure regarding mortgage loan renewals

89   (1) If the amortization period for a mortgage loan under a scheduled-payments credit agreement is longer than the term of the mortgage loan, the credit grantor must notify the borrower in writing, at least 21 days before the end of the term, whether or not the credit grantor is willing to renew the mortgage loan for a further term.

(2) In addition to any other legal, equitable or statutory remedy available to the borrower but subject to subsection (3), if a mortgage loan is to be renewed but the credit grantor does not give the borrower, at least 21 days before the effective date of the renewed mortgage loan, a disclosure statement that reflects the terms of the renewed mortgage loan,

(a) the credit grantor must give the borrower, on or before the effective date of the renewed mortgage loan, a disclosure statement that reflects the terms of the renewed mortgage loan,

(b) the borrower may pay, within 21 days after receiving the disclosure statement referred to in paragraph (a), the outstanding balance of the mortgage loan without penalty, and

(c) if the borrower pays the outstanding balance of the mortgage loan in accordance with paragraph (b), the credit grantor must refund to the borrower any non-interest finance charges imposed in connection with the renewal.

(3) Subsection (2) does not apply if

(a) a credit grantor gives the borrower a disclosure statement in relation to the renewed mortgage loan at least 21 days before the effective date of the renewed mortgage loan, and

(b) that statement does not reflect the terms of the renewed mortgage loan by reason only that

(i) the outstanding balance of the mortgage loan on the effective date of the renewed mortgage loan differs from what was stated in the disclosure statement because of one or more missed, late, early or extra payments,

(ii) the interest rate under the renewed mortgage loan is lower than the interest rate stated in the disclosure statement, or

(iii) the amortization period or frequency of payments under the renewed mortgage loan differs from what was stated in the disclosure statement.

(4) If subsection (3) applies, the credit grantor must give the borrower, within 30 days after the effective date of the renewed mortgage loan, a revised disclosure statement that reflects the terms of the renewed mortgage loan.

Application of this Division

90   This Division applies only to credit agreements that extend open credit.

Initial disclosure statements for open credit

91   (1) A credit grantor who has entered into, or who is negotiating to enter into, a credit agreement must ensure that the initial disclosure statement for that credit agreement discloses 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) when interest begins to accrue on advances or different types of advances and information concerning any grace period;

(g) the nature of any non-interest finance charges that may become payable by the borrower under the credit agreement and the amount, or the method of determining the amount, of those charges;

(h) [Not in force.]

(i) any optional services purchased by the borrower that are payable to or through the credit grantor, the charges for those optional services 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;

(m) a telephone number in accordance with section 92 (3) [statements of account].

(2) Despite subsection (1),

(a) the credit limit referred to in subsection (1) (b) may be disclosed

(i) in the first statement of account given to the borrower, or

(ii) in a separate statement given to the borrower on or before the date on which the borrower receives the first statement of account, and

(b) the following information may be disclosed in a separate statement given to the borrower before the services are provided or the transaction occurs:

(i) information about the nature and amount of charges for any optional service referred to in subsection (1) (i);

(ii) information that relates to a specific transaction under the credit agreement.

Statements of account

92   (1) Subject to subsection (2), the credit grantor must give the borrower, at least monthly, a statement of account that contains the following information:

(a) the period covered by the statement, which period must run from the date of the first advance or, if a statement of account has been given under this section, from the date of the statement of account most recently given to the borrower;

(b) the outstanding balance at the beginning of the statement period;

(c) the posting date, description and amount of each transaction or charge added to the outstanding balance during the statement period;

(d) the posting date and amount of each payment or credit subtracted from the outstanding balance during the statement period;

(e) the annual interest rate or rates in effect during the statement period or any part of that period;

(f) the total of all amounts added to the outstanding balance during the statement period;

(g) the total of all amounts subtracted from the outstanding balance during the statement period;

(h) the outstanding balance at the end of the statement period;

(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;

(n) a telephone number in accordance with subsection (3).

(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) there is no outstanding balance at the end of the period, or

(b) the borrower is in default and the credit grantor has

(i) demanded payment of the outstanding balance, and

(ii) given notice to the borrower that the borrower's privileges to obtain advances under the agreement have been cancelled or suspended because of the default.

(3) For the purposes of subsection (1) (n) and section 91 (1) (m) [initial disclosure statements for open credit], the credit grantor must

(a) provide a telephone number that the borrower can use, at no charge, to obtain information about the borrower's account during the credit grantor's ordinary business hours, and

(b) ensure that the information about the borrower's account is available at the number during those hours.

Description of transactions, charges, payments or credits

93   (1) In this section, "event" means a transaction, charge, payment or credit.

(2) An event is sufficiently described for the purposes of section 92 (1) (c) and (d) [statements of account] if the description in the statement of account, along with any event record included with the statement of account or made available to the borrower at the time of the event, can reasonably be expected to enable the borrower to verify the event.

Definitions

94   In this Division:

"cardholder" means an individual who is a borrower in relation to a credit card;

"credit card issuer" means a person who is a credit grantor in relation to a credit card.

Application of this Division

95   This Division applies only to credit agreements that extend open credit.

Credit cards may be issued only on application

96   (1) A credit card issuer must not issue a credit card to an individual who has not applied for the card.

(2) Subsection (1) does not apply to a credit card that is issued to an individual to replace or renew a card that was applied for and issued to that individual.

Applications for credit cards

97   (1) A credit card issuer who has entered into, or who is negotiating to enter into, a credit agreement for a credit card must ensure that the application form for that credit card discloses the following information or complies with subsection (2):

(a) if the interest rate payable under the credit agreement is a fixed rate of interest, that interest rate expressed as an annual interest rate;

(b) if the interest rate payable under the credit agreement is a floating rate, the index rate and the manner by which that rate is to be modified to obtain the interest rate payable under the credit agreement;

(c) the grace period, if any;

(d) the nature and amount of any non-interest finance charges that are payable or may become payable by the cardholder;

(e) the date as of which the information referred to in paragraphs (a) to (d) is in effect.

(2) Instead of disclosing the information required by subsection (1), the credit card issuer

(a) may disclose in the application form a telephone number that the cardholder can use, at no charge, to obtain that information during the credit card issuer's ordinary business hours, and

(b) must ensure that the information is available at the number during those hours.

(3) Despite subsection (2), if an individual applies for a credit card in person, by telephone or by any electronic means, the credit card issuer must disclose the information referred to in subsection (1) when the individual makes the application.

(4) An individual who applies for a credit card without signing an application form is deemed, on using the credit card for the first time, to have entered into a credit agreement in relation to that card in the terms of the disclosure statement referred to in subsection (5).

(5) Nothing in this section relieves the credit card issuer from the requirement to give a disclosure statement in accordance with sections 66 [disclosure statements must be given] and 91 [contents of initial disclosure statement for open credit].

Additional disclosure for credit cards

98   (1) In addition to the information required by section 91 [contents of initial disclosure statement for open credit] to be disclosed, a credit card issuer must disclose, in the initial disclosure statement for a credit card, the cardholder's maximum liability for unauthorized use of the credit card if it is lost or stolen.

(2) The credit card issuer must notify the cardholder of any change in the information disclosed in a disclosure statement,

(a) in the case of a change to the following information, in the next statement of account following the change in information or in a document that is given to the cardholder 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;

(iv) a change in a floating interest rate, or

(b) in any other case, at least 30 days before the date that the change takes effect.

Limitation of cardholder's liability

99   (1) A cardholder who has reported, orally or in writing, 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 card after the credit card issuer receives the report.

(2) The maximum total liability of a cardholder arising from unauthorized use of a lost or stolen credit card before the 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.

(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.

Definitions

100   (1) In this Division:

"assumed residual payment" means,

(a) for an option lease under which the option price at the end of the term is less than the estimated residual value, that option price, and

(b) in any other case, the estimated residual value plus 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 determined by

(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 determined under paragraph (a) the total amount of all payments made by the lessee at or before the beginning of the term, not including

(i) any refundable security deposit, and

(ii) any periodic payment;

"cash value", in relation to leased goods, means

(a) if the lessor or an associate of the lessor sells like goods to cash customers in the ordinary course of carrying on business,

(i) a value that fairly represents the price for which the lessor or associate of the lessor sells those goods to cash customers, or

(ii) if the lessor and the lessee agree on a lower cash value, that lower cash value, or

(b) if the lessor or an associate of the lessor does not sell like goods to cash customers in the ordinary course of carrying on business,

(i) the lessor's reasonable estimate of the price at which cash customers would buy those goods, or

(ii) if the lessor and the lessee agree on a lower cash value, that lower cash value;

"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;

"estimated residual value" means the reasonable estimate, made by the lessor at the time the lease was entered into, of the wholesale value of the leased goods at the end of the term;

"implicit finance charge" means the amount determined, in connection with a lease, by

(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 determined 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;

"option price" means the amount of the additional payment that the lessee must make in order to exercise the option under an option lease;

"realizable value" means the realizable value of leased goods at the end of the lease term as calculated in accordance with the regulations;

"residual obligation lease" means a lease under which, subject to section 102 [maximum liability under residual obligation leases], the lessee may be required to pay the lessor at the end of the lease term an amount based wholly or partly on the difference, if any, between the estimated residual value and the realizable value of the leased goods;

"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.

(2) For the purpose of applying section 57 [definitions] to this Division, a reference in that section to "borrower", "cash price", "credit agreement", "credit grantor" or "purchased" is deemed to be a reference to "lessee", "cash value", "lease", "lessor" or "leased", respectively.

Disclosure required in relation to leases

101   (1) A lessor who has entered into, or who is negotiating to enter into, a lease must ensure that the initial disclosure statement for that lease discloses the following information:

(a) the effective date of the statement;

(b) a statement that the transaction is a lease;

(c) a description of the leased goods;

(d) the term of the lease;

(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 in which the lessee will be required to make a payment in connection with the lease and if that payment is not a payment required to be disclosed under paragraphs (g) 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;

(q) the total lease cost.

(2) The circumstances referred to in subsection (1) (n) include, without limitation, unreasonable wear or excess use.

Maximum liability under residual obligation leases

102   The lessee's maximum liability at the end of the term of a residual obligation lease after returning the leased goods to the lessor is the sum of the following amounts as calculated in accordance with the regulations:

(a) the estimated residual cash payment;

(b) the estimated residual value less the realizable value of the leased goods.

Definitions

103   In this Division:

"borrower" includes a lessee;

"credit agreement" includes a lease;

"credit grantor" includes a lessor and a loan broker.

Refund of overpayment

104   Despite any agreement to the contrary, if a borrower makes a payment to a credit grantor that the credit grantor is not entitled to receive, the credit grantor must

(a) refund the payment to the borrower, or

(b) if the parties agree, credit the payment against the outstanding balance of the credit agreement as of the time the payment was made.

Credit grantor must compensate borrower for contravention

105   (1) A credit grantor who contravenes this Act or the regulations must compensate a borrower for any loss the borrower suffers because of the contravention, and the compensation to which the borrower is entitled may be set off against any money then due and payable under the credit agreement.

(2) The balance of the compensation, following any set off under subsection (1), may

(a) in accordance with the request of the borrower, be set off against the outstanding balance of the credit agreement or paid to the borrower, or

(b) be recovered in an action under section 171 [damages recoverable].

Definitions

106   In this Part:

"credit information" means information about an individual's credit, including the individual's name, age, place of residence, previous places of residence, marital status, spouse's name and age, number of dependants, particulars of education or professional qualifications, place of employment, previous places of employment, estimated income, paying habits, outstanding debt obligations, cost of living, or obligations and assets;

"report" means a written, oral or other communication respecting credit information of an individual;

"reporting agency" means a person, whether in British Columbia or not, who

(a) provides reports for gain or profit,

(b) provides reports on a routine, non-profit basis as an ancillary part of a business carried on for gain or profit, or

(c) is designated by regulation.

Consent for report

107   (1) A person must not obtain from a reporting agency a report respecting an individual for a purpose referred to in section 108 (1) (a) [to whom reports may be given] without the consent of the individual.

(2) A person may obtain the consent of the individual by any method that permits the person to produce evidence that the individual consented, including by prominently displaying the information respecting the consent in a clear and comprehensible manner in an application for credit, insurance, employment or tenancy.

To whom reports may be given

108   (1) A reporting agency must not knowingly provide any credit information about an individual in a report, except in a report given

(a) to a person who, it has reason to believe,

(i) intends to use the report in connection with extending credit to, or collecting a debt of, the individual,

(ii) intends to use the report in connection with the individual entering into or renewing a tenancy agreement,

(iii) intends to use the report for the purpose of evaluating the individual for employment, promotion, reassignment or retention as an employee,

(iv) intends to use the report in connection with underwriting insurance involving the individual,

(v) intends to use the report to determine the eligibility of the individual under an enactment, if the information is relevant to a lawful requirement, or

(vi) otherwise has a direct business requirement for the report in connection with a transaction,

(b) to the government of Canada, the government of a province or a municipality in Canada or to an agent of the government of Canada, the government of a province or a municipality in Canada,

(c) to a law enforcement agency in Canada, concerning an offence under the laws of Canada or of a province, to assist in an investigation or in the making of a decision to undertake an investigation

(i) to determine whether the offence has taken place, or

(ii) to prepare for the laying of a charge or the prosecution of the offence,

(c.1) in response to a request made under section 67 (8) of the Civil Forfeiture Act,

(d) in response to a court order,

(e) to the director, to assist in an inspection under this Act, or

(f) under the written consent of the individual to whom the information relates.

(2) A person must not obtain from a reporting agency a report about an individual except in the circumstances referred to in subsection (1).

Contents of reports

109   (1) A reporting agency must not include in a report given under section 108 (1) (a) [to whom reports may be given] any of the following:

(a) information, unless the name and address of the source of the information is recorded in its files or can be readily ascertained by the individual;

(b) information not based on the most reliable evidence reasonably available;

(c) unfavourable information, other than unfavourable credit information, unless the reporting agency has

(i) corroborated the information, or

(ii) made reasonable efforts to corroborate the evidence on which the information is based, and the lack of corroboration is noted with and accompanies the information;

(d) information about a legal proceeding in which the individual is a nominal defendant or in which the cause of action is primarily other than for a liquidated amount;

(e) [Repealed 2012-13-35.]

(f) information about a judgment 6 years after the judgment was given, unless the creditor or the creditor's agent confirms that all or part of the judgment remains unpaid and the confirmation appears in the reporting agency's file;

(g) information about the bankruptcy of an individual 6 years after the date the individual was discharged from bankruptcy, unless the individual has been bankrupt more than once;

(h) information about criminal or summary conviction charges against the individual unless the charges have resulted in conviction;

(i) information about a conviction of the individual under the laws of Canada or a province 6 years after the date of conviction or, if the conviction resulted in imprisonment, after the date of the individual's release or parole, but information about a conviction must not be reported if

(i) the individual has been granted an absolute or conditional discharge, or

(ii) after the conviction, the individual has been granted a free pardon;

(j) information given orally, unless the content of the oral report is recorded in the reporting agency's file;

(k) information about the race, belief, colour, sexual orientation, ancestry, ethnic origin or political affiliation of an individual;

(l) information concerning any member of the individual's family other than the spouse as provided for in this Part;

(m) information about the payment or non-payment of lawfully imposed fines 6 years after the fine was imposed;

(n) information about a legal proceeding 12 months after the date the proceeding began, unless the current status of the proceeding has been ascertained and is included in the report;

(o) any other information adverse to the individual's interest 6 years after the event that gave rise to the information;

(p) any other prescribed information.

(2) For the purposes of subsection (1) (a), a person who provides information to a reporting agency for remuneration or other benefit except salary is not a source of information.

(3) In a report given under section 108 (1) (b) [report given to a government], a reporting agency must not provide information about an individual except the following information:

(a) name;

(b) current address and former addresses;

(c) current place of employment and former places of employment.

Notice of denial of benefit or increase of cost of benefit

110   (1) If a person who receives a report given under section 108 (1) (a) [to whom reports may be given] uses information contained in the report to

(a) deny all or part of a benefit to an individual, or

(b) increase the cost of a benefit to an individual,

either wholly or partly because of information contained in the report, the person must give written notice of the denial or increase to the individual and, if the report was about another individual, that other individual.

(2) The person must give the notice

(a) not later than 30 days after the decision was made, and

(b) in person or by mail to the last known address of each individual.

(3) For the purpose of this section, a notice that is sent by mail is deemed to have been given at the time it is sent.

(4) On the written request of the individual made within 60 days after receipt of the notice, the person must inform the individual of the name and address of the reporting agency.

(5) The notice must contain a statement of the individual's right to request the information referred to in subsection (4).

Explanation

111   (1) An individual may give to a reporting agency, in writing of not more than 100 words, an explanation or additional information that relates to the information kept by the reporting agency about the individual.

(2) The reporting agency must retain the explanation or additional information with the other information the reporting agency keeps about the individual and must include the explanation or additional information in any report given about the individual if the explanation or additional information relates to any information in the report.

False or misleading information

112   (1) A person must not supply false or misleading information to a reporting agency.

(2) A person does not contravene subsection (1) if, at the time the information was supplied, the person did not know that it was false or misleading and, with the exercise of reasonable diligence, could not have known that it was false or misleading.

Definitions

112.01   In this Part:

"advance" has the same meaning as in Part 5;

"APR" has the same meaning as in Part 5;

"assignment of wages" has the same meaning as in the Employment Standards Act;

"borrower" has the same meaning as in Part 5;

"cash card" means a card or other device that

(a) can be used to obtain cash or acquire goods or services, but does not include a credit card, and

(b) is issued by a payday lender to the borrower instead of advancing cash or transferring money to the borrower or to the order of the borrower;

"credit card" has the same meaning as in Part 5;

"default charge" has the same meaning as in Part 5;

"high-cost credit product" has the same meaning as in Part 6.3;

"interest" means charges that accrue over time and are determined by applying a rate to the principal of a payday loan from time to time under the loan agreement;

"loan agreement" means, in relation to a payday loan, the written agreement required under section 112.06 [payday loan agreements];

"loan broker" has the same meaning as in Part 5;

"payday lender" means a person who offers, arranges, provides or otherwise facilitates payday loans to or for consumers, and, for greater certainty, includes a loan broker;

"payday loan" means a credit agreement, as defined in section 57, that is a loan of money, with a principal of $1 500 or less and for a term of 62 days or less, 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 term" means, in relation to the duration of a payday loan, the period between the first advance and the end of the period in respect of which payments are required under the payday loan;

"payment" has the same meaning as in Part 5;

"permissible charge" means a fee, penalty, rate, commission or charge specified by regulation under section 197.1 (1) (a);

"personal information" has the same meaning as in section 1 of the Personal Information Protection Act;

"rollover" means any of the following:

(a) the extension or renewal of a payday loan that imposes additional fees or charges on the borrower, other than interest;

(b) the advancement of a new payday loan to pay out an existing payday loan;

"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.

Limits on total cost of borrowing — payday loans

112.02   (1) The Lieutenant Governor in Council may, by regulation, set the maximum amount, or establish a rate, formula, tariff or method of determining the maximum amount, that may be charged, required or accepted by a payday lender in respect of

(a) the total cost of credit for a payday loan,

(b) any interest, and

(c) any permissible charge.

(2) A payday lender must not charge, require or accept from the borrower or consumer any amount that exceeds a maximum set or determined under subsection (1).

Prohibitions respecting interest charges

112.03   (1) A payday lender must not charge, require or accept any interest in respect of a payday loan for any period of time

(a) before the first advance is received by the borrower, or

(b) after

(i) the date on which the last payment from the borrower is required under the loan agreement, or

(ii) if the borrower repays the payday loan before the end of the payday loan term under the loan agreement, the date of that payment.

(2) Despite subsection (1) (b) (i), if the borrower fails to make the last payment required under the loan agreement, the payday lender must not charge, require or accept any interest in respect of the payday loan for any period of time that exceeds the maximum number of days prescribed under section 197.1 (1) (c).

(3) A payday lender must not charge, require or accept interest on anything other than the outstanding principal of a payday loan.

Fees, penalties and charges prohibited unless allowed by regulation

112.04   (1) A payday lender must not charge, require or accept

(a) any fee, penalty, rate, commission, consideration, charge or other amount unless it is a permissible charge,

(b) any amount that is not disclosed in the loan agreement,

(c) any amount that exceeds the amount disclosed in the loan agreement,

(d) any amount for cancellation of a payday loan under section 112.05 [payday loan cancellation rights],

(e) any amount for making a payment before it is due under the loan agreement or for repayment of a payday loan before the end of the payday loan term under the loan agreement, or

(f) any amount for or in relation to a cash card issued to a borrower.

(2) Subject to sections 112.02 (2) [limits on total cost of borrowing] and 112.03 [prohibitions respecting interest charges], subsection (1) (e) of this section does not prevent the payday lender from requiring interest in accordance with those sections.

(3) For certainty, the prohibition in subsection (1) (f) applies even if

(a) the borrower fails to make any payment under the loan agreement, or

(b) the payday loan in respect of which the card is issued has been repaid by the borrower.

Payday loan cancellation rights

112.05   (1) A borrower may cancel a payday loan at any time before the end of the next day that the payday lender is open for business following the date on which the borrower receives the first advance, or before the end of any longer period that may be prescribed in the regulations.

(2) For the purposes of subsection (1),

(a) receipt of a cash card constitutes an advance if the cash card is in immediate effect on that receipt and can be used by the borrower to obtain cash or acquire goods or services at that time, and

(b) if the next business day falls, or the prescribed cancellation period expires, on a holiday, the time for exercising the cancellation right under that subsection is extended to the end of the next day that the payday lender is open for business that is not a holiday.

(3) A borrower may cancel a payday loan at any time if the payday lender

(a) does not advise the borrower of the borrower's cancellation right under subsection (1),

(b) fails to satisfy any of the requirements of section 112.06 (2), (4) (a) and (5) [payday loan agreements], or

(c) contravenes a prescribed provision of this Act or the regulations.

(4) To exercise cancellation rights under this section, the borrower must

(a) complete the cancellation notice provided by the payday lender under section 112.06 (5) and give that notice to the payday lender in accordance with the regulations, and

(b) repay, by cash, certified cheque or money order or in another prescribed manner, the amount of all advances made to the borrower under the payday loan on or before the date of cancellation.

(5) For the purposes of subsection (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 that advance, and

(b) if the first advance was made in the form of a cash card referred to in subsection (2), a return of that card to the payday lender is to be considered a repayment of the first advance to the extent of the cash or credit balance remaining on the cash card.

(6) On the cancellation of a payday loan under this section, the payday lender must immediately give the borrower a receipt for the amount the borrower paid or returned to the payday lender on cancelling the loan.

(7) Cancellation of a payday loan under this section extinguishes every liability and obligation of the borrower under or related to the loan agreement.

Payday loan agreements: required terms and disclosure statements

112.06   (1) The terms of a payday loan must be included in a written agreement that is signed and dated by the borrower.

(2) A payday lender must ensure that the loan agreement includes all of the following terms, information and statements:

(a) the payday lender's name and, if different, the name under which the payday lender carries on business;

(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 lender has a fax number or email address, that fax number and email address;

(d) the borrower's name;

(e) the date of the agreement and the date or dates on which the first advance and any other advance will be made to the borrower or to the order of the borrower;

(f) the principal of the payday loan;

(g) the payday loan term of the payday loan;

(h) the amount of cash advanced to the borrower or the amount of money 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 for the payday loan;

(l) a statement that interest applies only to the principal of the payday loan;

(m) the rate of interest that applies to the principal of the payday loan, together with a statement of the total amount of interest that is payable under the loan;

(n) each of the permissible charges that apply, together with a statement of the amount of each of those permissible charges;

(o) the date on which each payment is due to the payday lender and the amount of each of those payments;

(p) a statement that the payday loan is a "high-cost loan";

(q) a statement of the borrower's rights of cancellation under section 112.05, setting out how those rights can be exercised and identifying the time by which the borrower can exercise them;

(r) a statement of the remedies available to the borrower under section 112.10 [remedies];

(s) 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;

(t) any other term, information or statement that may be prescribed under section 197.1 (1) (i).

(3) The payday lender must ensure that the terms, information and statements required under subsection (2) are written in a clear and comprehensible manner.

(4) Before the borrower signs the loan agreement, the payday lender must

(a) review with the borrower the matters described in subsection (2) (k) and (q), and

(b) require that the borrower initial each of those matters in the agreement.

(5) The payday lender must give the borrower a copy of the loan agreement at the time it is signed by the borrower, together with a cancellation notice in the form, approved by the director, which may be used by the borrower for the purposes of section 112.05 [payday loan cancellation rights].

Application of payments, entitlement to prepay loan and receipts for payments

112.07   (1) Despite anything in the loan agreement,

(a) the payday lender must apply payments towards the payday loan first to any interest accrued or accruing on the amount payable under the loan, then to any permissible charges under this Part and subsequently to the principal of the loan, and

(b) the borrower is entitled to prepay, at any time,

(i) the full outstanding balance owing under the loan agreement, and

(ii) any amount, whether full or partial, before it is due under the loan agreement.

(2) On receiving payment, the payday lender must immediately give the borrower a receipt for that payment and, if there is a balance outstanding on the payday loan, the receipt must

(a) specify the amount of the payment that has been applied to

(i) interest,

(ii) any permissible charges, and

(iii) the principal of the loan, and

(b) if another payment is due under the loan agreement, specify

(i) the balance of the principal outstanding on the loan,

(ii) the date on which the next payment is due under the agreement, and

(iii) the amount of that next payment.

Other prohibited payday lender practices

112.08   (1) A payday lender must not do any of the following:

(a) grant rollovers;

(b) issue a new payday loan to a borrower who already has a payday loan issued by the lender;

(c) issue a payday loan in excess of a prescribed portion of a borrower's net pay or other net income to be received during a single pay period within the payday loan term;

(d) require or request from a borrower any payment, whether to the payday lender or a third party service provider, that in total exceeds a prescribed portion of the borrower's net pay or other net income to be received during the payday loan term;

(e) discount the principal amount of a payday loan by deducting or withholding from the initial advance an amount representing any portion of the total cost of credit;

(f) require, request or accept any undated cheque;

(g) require, request or accept any post-dated cheque, pre-authorized debit or future payment of a similar nature, for any amount exceeding the amount to repay the payday loan by the due date, including interest and permissible charges;

(h) require or request any payment from the borrower before it is due under the loan agreement;

(i) sell insurance to or for the borrower, or require or request that the borrower insure a payday loan;

(j) require, request or accept an assignment of wages from the borrower;

(k) require, request or accept from the borrower or any other person, as security for a payday loan, any personal property or real property;

(l) require, request or accept from the borrower or any other person, as security for a payday loan, any documentation that may be used to transfer title in the borrower's personal property or real property;

(l.1) require, request or accept consent from a borrower to use or disclose the borrower's personal information for a purpose other than offering, arranging, providing or otherwise facilitating a payday loan;

(m) engage in any other practice prohibited by regulations under section 197.1.

(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.

Payout of balances on cash cards

112.09   (1) 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 prescribed amount;

(b) the payday loan has been repaid by the borrower and the cash card has expired.

(2) If the borrower is entitled to be paid a balance under subsection (1) and returns the cash card to the payday lender, the payday lender must pay the balance immediately on demand by the borrower or by the director.

(3) On return of a cash card under this section, the payday lender must immediately give the borrower a receipt for the cash card and the receipt must specify the amount paid to the borrower.

(4) Subject to and in accordance with the regulations, the balance of credit remaining on an expired cash card issued to a delinquent borrower may be applied by the payday lender as payment towards the payday loan.

(5) In subsection (4), "delinquent borrower" means a borrower who fails to repay a payday loan by the end of the payday loan term under the loan agreement.

Remedies

112.10   (1) The borrower is not liable to pay the payday lender any amount that

(a) exceeds the maximum set by regulation under section 112.02 (1), or

(b) a lender is prohibited from charging, requiring or accepting under section 112.03 [prohibitions respecting interest charges] or 112.04 [fees, penalties and charges prohibited unless allowed by regulation].

(2) If the borrower has paid an amount referred to in subsection (1), the borrower is entitled to a refund of all monies paid in excess of the principal of the payday loan.

(3) If a payday lender contravenes section 112.08 (1) (a) [other prohibited payday lender practices] by granting a rollover of a payday loan, the borrower is not liable to pay the payday lender any amount that exceeds the principal of that payday loan, and, for certainty, if the rollover is an advancement of a new payday loan to pay out an existing payday loan, the borrower is not liable to pay the payday lender any amount that exceeds the principal of the existing payday loan.

(4) If the borrower has paid an amount in excess of the principal referred to in subsection (3), the borrower is entitled to a refund of that amount.

(5) If a payday lender contravenes section 112.08 (1) (e) [prohibited payday lender practices — discount the principal] by deducting or withholding any portion of the total cost of credit from the first advance under a payday loan, the borrower is not liable to pay the payday lender any amount that exceeds that advance less the portion deducted or withheld.

(6) If the borrower has paid an amount in excess of the advance less the portion described in subsection (5), the borrower is entitled to a refund of that amount.

(7) If the borrower is entitled to a refund under subsection (2), (4) or (6), the payday lender must provide the refund immediately on demand by the borrower or by the director.

(8) If the terms of a loan agreement require the borrower to pay an amount referred to in subsection (1), the borrower is responsible to repay only the principal of the payday loan and subsections (2) and (7) apply in respect of any payments made in excess of the principal.

(9) If the terms of a loan agreement provide for a rollover and require the borrower to pay an amount in excess of the principal referred to in subsection (3), the borrower is responsible to repay only that principal and subsections (4) and (7) apply in respect of any payments made in excess of that principal.

(10) If the terms of a loan agreement provide for a deduction or withholding described in subsection (5) and require the borrower to pay an amount in excess of the advance less the portion described in that subsection, the borrower is only responsible to repay an amount equal to the sum of the advance less that portion and subsections (6) and (7) apply in respect of any payments made in excess of that amount.

(11) The remedies under this section are in addition to any other remedy available to the borrower and are additional to any other penalty that the payday lender may be subject to under this Act or the regulations.

Application of Part 6.1 to savings institutions

112.11   This Part does not apply to savings institutions that offer, arrange or provide payday loans to or for consumers, except to the extent provided by the regulations.

Definitions

112.12   In this Part:

"cheque cashing fee" means any of the following:

(a) a fee, rate, commission, consideration, charge or other amount charged, paid or given for cashing or negotiating a government cheque;

(b) any other fee, rate, commission, consideration, charge or other amount designated by regulation as a cheque cashing fee;

"government body" means a government body within the meaning of the Financial Administration Act that is designated by regulation under section 112.15;

"government cheque" means a cheque, or other written order to pay, that is drawn on an account of any of the following:

(a) the government of British Columbia;

(b) the government of Canada;

(c) a government body;

(d) a local government body;

"local government body" means a local authority within the meaning of the Community Charter that is designated by regulation under section 112.15.

Unauthorized cheque cashing fees prohibited

112.13   A person must not charge, require or accept a cheque cashing fee except as permitted by regulations under this Part.

Consequence of failure to comply

112.14   (1) If a person contravenes section 112.13,

(a) a consumer who pays or is charged or required to pay the cheque cashing fee or any part of it is not liable to pay that cheque cashing fee, and

(b) the person must, immediately on demand by the consumer or the director, reimburse the consumer in cash for

(i) the total amount paid as a cheque cashing fee, and

(ii) the value of any other consideration given.

(2) Subsection (1) is in addition to any other penalty that the person may be subject to under this Act or the regulations.

Regulations

112.15   (1) The Lieutenant Governor in Council may make regulations as follows:

(a) designating a fee, rate, commission, consideration, charge or other amount as a cheque cashing fee for the purposes of this Part;

(b) designating a government body under the Financial Administration Act as a government body for the purposes of this Part;

(c) designating a local authority under the Community Charter as a local government body for the purposes of this Part;

(d) setting the maximum amount, or establishing a rate, formula, tariff or method of determining the maximum amount, that may be charged, required or accepted as a cheque cashing fee;

(e) exempting any transaction or class of transactions or any person or class of persons from the application of this Part or a regulation under this Part;

(f) respecting any other matter that the Lieutenant Governor in Council considers necessary or advisable for the administration of this Part.

(2) Without limiting subsection (1), the Lieutenant Governor in Council may make different regulations respecting cheque cashing fees for different government cheques or different classes of government cheques.

Definitions

112.16   In this Part:

"advance" has the same meaning as in Part 5;

"APR" has the same meaning as in Part 5;

"assignment of wages" has the same meaning as in Part 6.1;

"borrower" has the same meaning as in Part 5, and, for greater certainty, includes a lessee;

"cash card" means a card or other device that

(a) can be used to obtain cash or acquire goods or services, but does not include a credit card, and

(b) is issued by a high-cost credit grantor to the borrower of a high-cost credit product instead of advancing cash or transferring money to the borrower or to the order of the borrower;

"default charge" has the same meaning as in Part 5;

"fixed credit" has the same meaning as in Part 5;

"grace period" has the same meaning as in Part 5;

"high-cost credit agreement" means a credit agreement under which credit is extended by way of a high-cost credit product, and includes an agreement to renew, amend or extend a high-cost credit agreement;

"high-cost credit grantor" means a person who offers, arranges, provides or facilitates high-cost credit products to or for consumers, and, for greater certainty, includes a loan broker;

"high-cost credit product" means

(a) a fixed credit product that has an APR that exceeds the prescribed APR and meets other prescribed criteria,

(b) an open credit product that has an annual interest rate that, calculated in accordance with the regulations, exceeds the prescribed annual interest rate and meets other prescribed criteria,

(c) a lease that has an APR that exceeds the prescribed APR and meets other prescribed criteria, or

(d) a prescribed product through which credit is extended by a high-cost credit grantor to a borrower primarily for a personal, family or household purpose,

but does not include a payday loan, mortgage on real property or prescribed credit product;

"interest" has the same meaning as in Part 5;

"loan broker" has the same meaning as in Part 5;

"open credit" has the same meaning as in Part 5;

"optional product" means a good or service, or both, that is offered to a borrower in connection with a high-cost credit agreement and that the borrower does not have to accept in order to enter into the high-cost credit agreement;

"outstanding balance" has the same meaning as in Part 5;

"payment" has the same meaning as in Part 5;

"personal information" has the same meaning as in section 1 of the Personal Information Protection Act;

"security interest" has the same meaning as in Part 5;

"term" has the same meaning as in Part 5;

"third party service provider charge" means any fee, penalty, rate, commission, consideration, charge or other amount that is charged or required by a person who is not the high-cost credit grantor, or that is paid to such a person, in relation to a high-cost credit product;

"total cost of credit" has the same meaning as in Part 5.

Limits on total cost of borrowing — high-cost credit products

112.17   A high-cost credit grantor must not charge a borrower a rate that is equal to or higher than

(a) a prescribed rate, if any, or

(b) if there is no prescribed rate, the rate in section 347 of the Criminal Code (Canada).

Certain fees, penalties and charges prohibited

112.18   A high-cost credit grantor must not charge, require or accept

(a) any amount that is not disclosed in the high-cost credit agreement,

(b) any amount that exceeds the amount disclosed in the high-cost credit agreement,

(c) any amount for cancellation of a high-cost credit product under section 112.20 [high-cost credit product cancellation rights],

(d) any amount for making a payment before it is due under the high-cost credit agreement or for repayment of a high-cost credit product before the end of the term of the high-cost credit agreement,

(e) any fee to refinance, restructure or change the terms of a high-cost credit agreement, or

(f) any other prescribed fee, penalty, rate, commission, consideration, charge or other amount.

No deduction from principal

112.19   A high-cost credit grantor must not

(a) discount the principal amount of a high-cost credit product by deducting or withholding an amount from any advance, or

(b) draw an amount representing any portion of the total cost of credit.

High-cost credit product cancellation rights

112.20   (1) A borrower may cancel a high-cost credit product at any time before the end of the next day that the high-cost credit grantor is open for business following the date on which the borrower enters into the agreement, or before the end of any longer period that may be prescribed in the regulations.

(1.1) If the next day that the high-cost credit grantor is open for business following the date on which the borrower enters into the agreement falls on a holiday, or if the longer period referred to in subsection (1) expires on a holiday, the time for exercising the cancellation right under subsection (1) is extended to the end of the next day that the high-cost credit grantor is open for business that is not a holiday.

(2) A borrower may cancel a high-cost credit product at any time if the high-cost credit grantor

(a) does not advise the borrower of the borrower's cancellation right under subsection (1),

(b) fails to satisfy any of the requirements of section 112.21 (2), (4) (a) and (5) [high-cost credit agreements: required terms], or

(c) contravenes a prescribed provision of this Act or the regulations.

(3) To exercise cancellation rights under this section, the borrower must

(a) complete the cancellation notice provided by the high-cost credit grantor under section 112.21 (5) and give that notice to the high-cost credit grantor in accordance with the regulations, and

(b) repay, by cash, certified cheque or money order or in another prescribed manner, the outstanding balance of all amounts advanced to the borrower under the high-cost credit agreement less any amount of the cost of credit that was, as of the date of cancellation, repaid by or on behalf of the borrower.

(4) For the purpose of subsection (3) (b),

(a) if the first advance was made in the form of a cheque, a return of the unnegotiated cheque to the high-cost credit grantor is to be considered a repayment of that advance,

(b) if the first advance was made in the form of a cash card, a return of that cash card to the high-cost credit grantor is to be considered a repayment of the first advance to the extent of the outstanding balance remaining on the cash card, and

(c) receipt of a cash card constitutes an advance if the cash card is in immediate effect on that receipt and can be used by the borrower to obtain cash or acquire goods or services at that time.

(5) [Repealed 2021-27-36.]

(6) On the cancellation of a high-cost credit product under this section, the high-cost credit grantor must immediately give the borrower a receipt for the amount the borrower repaid or returned to the high-cost credit grantor.

(7) Cancellation of a high-cost credit product under this section extinguishes every liability and obligation of the borrower under or related to the high-cost credit agreement.

High-cost credit agreements: required terms

112.21   (1) The terms of a high-cost credit product must be included in a written high-cost credit agreement that is signed and dated by the borrower.

(2) A high-cost credit grantor must ensure that the high-cost credit agreement includes all of the following terms, information and statements:

(a) the high-cost credit grantor's

(i) name and, if different, the name under which the high-cost credit grantor carries on business,

(ii) business address and, if different, the high-cost credit grantor's mailing address, and

(iii) licence number, telephone number and, if the high-cost credit grantor has a fax number or email address, that fax number or email address;

(b) the borrower's name;

(c) the date of the agreement and, if known, the date or dates on which the first advance and any other advance will be made to the borrower or to the order of the borrower;

(d) a statement that the high-cost credit product is high-cost credit;

(e) a statement of the type of high-cost credit product;

(f) the principal amount of the high-cost credit product or the amount of funds available, as applicable;

(g) the term of the high-cost credit product and, if applicable, the date on which each payment is due to the high-cost credit grantor and the amount of each of those payments;

(h) respecting access to the high-cost credit product,

(i) each method by which the borrower may access funds for each transfer or advance,

(ii) if applicable, the date or dates on which the first and any other transfers or advances to the borrower will be made,

(iii) if applicable, the amount of any funds transferred or advanced, on each transfer or advance, to the borrower, and

(iv) if applicable, the cost of each method of accessing the funds on each transfer or advance;

(i) if the high-cost credit grantor advances or transfers the funds to the borrower by means of a cash card,

(i) the date and time the cash card is issued to the borrower,

(ii) the amount of credit available on the cash card issued to the borrower,

(iii) a statement that third party service provider charges may apply for use of the card, and

(iv) if applicable, the expiry date of the cash card;

(j) the fee, penalty, commission, consideration, charge or other amount subject to interest, the interest rate, how interest is calculated and compounded, how, when and why the interest rate will or may change, and a statement of the total amount of interest that is payable on the high-cost credit product and of what is included in the calculation of that amount;

(k) [Not in force.]

(l) the annual interest rate and, if applicable, the APR;

(m) as applicable,

(i) the total cost of credit expressed as a dollar amount, or

(ii) the total cost of credit expressed as a dollar amount based on the maximum available if the high-cost credit product is repaid within the prescribed time period;

(n) the fee, penalty, commission, consideration, charge or other amount that will or may be payable by or on behalf of the borrower to the high-cost credit grantor or a third party service provider;

(o) how, how often and why the fee, penalty, commission, consideration, charge or other amount referred to in paragraph (n) will or may be payable and what will or may happen if the borrower fails to pay a fee, penalty, commission, consideration, charge or other amount;

(p) how each payment will be applied to the accumulated cost of credit and the principal;

(q) the borrower's right to make full or partial prepayment under section 112.25 [entitlement to prepay and receipts for payments], and how to exercise that right;

(r) any security interest that will or may be required from the borrower;

(s) any grace period that will or may apply and what conditions, if any, the borrower must meet to benefit from it;

(t) what will or may happen if the borrower fails to make a payment when it becomes due, including

(i) what default charges or penalties will or may be payable by the borrower,

(ii) how and when the terms and conditions of the high-cost credit agreement will or may be affected by the missed payment, and

(iii) what will or may happen to any collateral or security;

(u) how, when and in what circumstances the high-cost credit grantor will or may demand payment in full from the borrower;

(v) each good or service that must also be purchased by the borrower, how to purchase it, why it is required and how much it will cost;

(w) the nature, amount and timing of payments for any optional product purchased by the borrower for which payments are to be made to or through the high-cost credit grantor;

(x) the conditions under which the borrower may terminate an optional product referred to in paragraph (w);

(y) how, when and in what circumstances the high-cost credit grantor will or may cancel the high-cost credit agreement;

(z) a statement of the borrower's rights of cancellation under section 112.20 [high-cost credit product cancellation rights], including how those rights can be exercised and identifying the date by which the borrower can exercise them;

(z.1) a statement of the remedies available to the borrower under section 112.31 [remedies];

(z.2) any other term, information or statement that may be prescribed in the regulations.

(3) The high-cost credit grantor must ensure that the terms, information and statements required under subsection (2) are written in a clear and comprehensible manner and meet any other prescribed criteria.

(4) Before the borrower signs a high-cost credit agreement, the high-cost credit grantor must

(a) review with the borrower the prescribed matters, and

(b) require that the borrower initial each of those matters in the agreement.

(5) The high-cost credit grantor must give the borrower a copy of the high-cost credit agreement at the time it is signed by the borrower, together with

(a) a cancellation notice in the form approved by the director, which may be used by the borrower for the purposes of section 112.20, and

(b) any other prescribed documents.

(6) The borrower may request, orally or in writing, an additional copy of the high-cost credit agreement.

(7) The high-cost credit grantor must provide the requested additional copy to the borrower within one business day of receiving the request under subsection (6).

Enticements prohibited

112.22   A high-cost credit grantor must not

(a) offer or promise to give, directly or indirectly, any prize or reward as an incentive to enter into, or for having entered into, a high-cost credit agreement, or

(b) state or imply that a high-cost credit product will improve the borrower's credit rating if it will not do so.

Assignment of wages prohibited

112.23   (1) A high-cost credit grantor must not require, request or accept an assignment of wages from the borrower.

(2) An assignment of wages is not valid if it is given in consideration of a high-cost credit product or an advance under a high-cost credit product, or to secure or facilitate a payment in relation to a high-cost credit product.

Payment must be payable to high-cost credit grantor

112.24   A high-cost credit grantor must not require, request or accept a cheque, pre-authorized debit or other negotiable instrument from a borrower unless the instrument

(a) is made payable to the high-cost credit grantor directly, and

(b) states the frequency of payments to be made to the high-cost credit grantor.

Entitlement to prepay and receipts for payments

112.25   (1) The borrower is entitled to prepay to the high-cost credit grantor, at any time,

(a) the full outstanding balance owing under the high-cost credit agreement, and

(b) any amount, whether full or partial, before it is due under the high-cost credit agreement.

(2) On receiving payment, the high-cost credit grantor must immediately give the borrower a receipt for that payment, and that receipt must include the information prescribed by regulation.

Early payment collection prohibited

112.26   A high-cost credit grantor must not collect or attempt to collect a payment before the date that payment is due under the high-cost credit agreement.

Repeated attempts by high-cost credit grantor to access payment prohibited

112.27   (1) Subject to subsection (2), a high-cost credit grantor must not present, more than once, a cheque, pre-authorized debit or other negotiable instrument provided by the borrower in exchange for regularly scheduled payments, or initiate, more than once, an electronic funds transfer, for the purpose of processing a regularly scheduled payment.

(2) If a high-cost credit grantor attempts to process a regularly scheduled payment and the payment is dishonoured, the high-cost credit grantor may make one additional attempt to process the payment by presenting a cheque, pre-authorized debit or other negotiable instrument or initiating an electronic funds transfer, as referred to in subsection (1), if

(a) the additional attempt to process the payment is for the same payment amount as the first attempt, and

(b) the additional attempt to process the payment is made within 30 days after the high-cost credit grantor received notice that the first payment was dishonoured.

Use of bank account information restricted

112.28   (1) Subject to subsection (2), a high-cost credit grantor must not require, request or accept information that would give the high-cost credit grantor direct access to a borrower's bank account.

(2) Subsection (1) does not apply to information in a pre-authorized debit for repayment of a high-cost credit product.

(3) If a borrower provides a high-cost credit grantor a pre-authorized debit in exchange for the advance of funds under a high-cost credit agreement, the high-cost credit grantor must not use that information for any purpose other than to access the borrower's account to process the pre-authorized payment.

Use and disclosure of borrower information restricted

112.29   A high-cost credit grantor must not require, request or accept consent from a borrower of a high-cost credit product to use or disclose the borrower's personal information for a purpose other than offering, arranging, providing, insuring or facilitating a high-cost credit product.

Payout of balances on cash cards

112.30   (1) If, in respect of a high-cost credit product, the high-cost credit grantor 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 prescribed amount;

(b) the high-cost credit product has been repaid by the borrower and the cash card has expired.

(2) If the borrower is entitled to be paid a balance under subsection (1) and the borrower returns the cash card to the high-cost credit grantor, the high-cost credit grantor must pay the balance immediately on demand by the borrower or by the director.

(3) On return of a cash card under this section, the high-cost credit grantor must immediately give the borrower a receipt for the cash card, and the receipt must specify the amount paid to the borrower.

(4) Subject to and in accordance with the regulations, the balance of credit remaining on an expired cash card issued to a delinquent borrower may be applied by the high-cost credit grantor as payment towards the high-cost credit product.

(5) In subsection (4), "delinquent borrower" means a borrower who fails to repay a high-cost credit product by the end of the high-cost credit product term under the high-cost credit agreement.

Remedies

112.31   (1) The borrower is not liable to pay the high-cost credit grantor any amount that

(a) exceeds the maximum under section 112.17 [limits on total cost of borrowing — high-cost credit products], or

(b) a high-cost credit grantor is prohibited from charging, requiring or accepting under section 112.18 [certain fees, penalties and charges prohibited].

(2) If the borrower has paid an amount referred to in subsection (1), the borrower

(a) is liable only to repay the principal of the high-cost credit product, and

(b) is entitled to a refund of all monies paid in excess of the principal of the high-cost credit product.

(3) If a high-cost credit grantor contravenes section 112.19 [no deduction from principal] by deducting a portion of the total cost of credit from the first advance, the borrower is not liable to repay the high-cost credit grantor any amount that exceeds the advance less the portion deducted.

(4) If the borrower has paid an amount that exceeds the amount of the advance less the portion deducted referred to in subsection (3), the borrower

(a) is liable to repay the high-cost credit grantor only an amount equal to the advance less the portion deducted, and

(b) is entitled to a refund of any amount that exceeds the amount of the advance less the portion deducted.

(5) If the borrower is entitled to a refund under subsection (2), (3) or (4), the high-cost credit grantor must provide the refund immediately on demand by the borrower or by the director.

(6) The remedies under this section are in addition to any other remedy available to the borrower and are additional to any other penalty that the high-cost credit grantor may be subject to under this Act or the regulations.

Exceptions

112.32   Except to the extent provided by the regulations, this Part does not apply to

(a) savings institutions that offer, arrange or provide high-cost credit products, or

(b) prescribed classes of high-cost credit grantors.

Application

112.33   If there is a conflict or inconsistency between provisions in Part 5 and provisions in this Part that apply to a borrower or a high-cost credit grantor, the provision that is most beneficial to the borrower applies.

Definition

113   In this division, "collector" means a person, whether in British Columbia or not, who is collecting or attempting to collect a debt.

Harassment

114   (1) A collector must not communicate or attempt to communicate with a debtor, a member of the debtor's family or household, a relative, neighbour, friend or acquaintance of the debtor, or the debtor's employer in a manner or with a frequency as to constitute harassment.

(2) Without limiting subsection (1), one or more of the following constitutes harassment:

(a) using threatening, profane, intimidating or coercive language;

(b) exerting undue, excessive or unreasonable pressure;

(c) publishing or threatening to publish a debtor's failure to pay.

Disclosure to debtor

115   (1) A collector must not attempt to collect payment of a debt from a debtor until the collector has notified the debtor in writing or the collector has made a reasonable attempt to notify the debtor in writing of

(a) the name of the creditor

(i) with whom the debt was originally incurred, and

(ii) to whom the debt is currently owed, if different from the creditor described in subparagraph (i),

(b) the amount of the debt

(i) on the date it was first due and payable, and

(ii) currently owing, including a breakdown of that current amount, if different from the amount of the debt on the date it was first due and payable, and

(c) the identity and authority of the collector to collect the debt from the debtor.

(2) A collector must not initiate verbal communication with a debtor with respect to the collection of a debt until 5 days after the collector has sent to the debtor the written notice referred to in subsection (1).

(2.1) Despite subsection (2), a collector may initiate verbal communication with a debtor, before sending to the debtor the written notice referred to in subsection (1), solely for the purpose of requesting the debtor's home address or electronic mail address in order to send that written notice, if the collector does not have the debtor's home address or electronic mail address or has that information but has reason to believe it is not correct.

(3) If a debtor informs the collector that the debtor has not received the notice required under subsection (1), the collector must send that information to the debtor at the address provided by the debtor.

Communication with debtor

116   (1) A collector must not communicate or attempt to communicate with a debtor at the debtor's place of employment unless

(a) the collector does not have the debtor's home address, telephone number or electronic mail address and the collector contacts the debtor solely for the purpose of requesting that information,

(b) the collector has attempted to contact the debtor at the home address, telephone number or electronic mail address that the collector has for the debtor, but the collector has not contacted the debtor in any of those attempts, or

(c) the collector has been authorized by the debtor to communicate with the debtor at the debtor's place of employment.

(2) The collector must not make more than one verbal attempt, under subsection (1) (b), to contact the debtor at the debtor's place of employment.

(3) At the time a collector communicates with a debtor, the collector must first indicate to the debtor

(a) the name of the creditor

(i) with whom the debt was originally incurred, and

(ii) to whom the debt is currently owed, if different from the creditor described in subparagraph (i),

(b) the amount of the debt

(i) on the date it was first due and payable, and

(ii) currently owing, including a breakdown of that current amount, if different from the amount of the debt on the date it was first due and payable, and

(c) the identity and authority of the collector to collect the debt from the debtor.

(4) A collector must not continue to communicate with a debtor

(a) except in writing, if the debtor

(i) has notified the collector to communicate in writing only, and

(ii) has provided a mailing address at which the debtor may be contacted,

(b) except through the debtor's lawyer, if the debtor