|
|
| Line 1: |
Line 1: |
| {{REVIEWED LSLAP | date= August 8, 2021}} | | {{REVIEWED LSLAP | date= June 30, 2021}} |
| {{LSLAP Manual TOC|expanded = consumer}} | | {{LSLAP Manual TOC|expanded = victims}} |
| | According to the National Center for Missing Persons and Unidentified Remains (NCMPUR), British Columbia records the highest number of missing persons in the country, accounting for more than 40% of the countries 29,645 cases in 2020 . |
|
| |
|
| The ''BPCPA'' has replaced the ''Consumer Protection Act'', and the ''BPCPA'' now also covers door-to-door sales, payday loans, gym memberships, unsolicited goods and services, and a number of other contracts (note that this is a non-exhaustive list of things the ''BPCPA'' covers). The primary remedy for consumers in the ''BPCPA'' regarding these types of activities is the right to avoid or cease contracts for direct sale or for future services, after giving '''notice''' in the manner required by the statute. A single contract may fall under more than one category, and in that case, will attract the requirements and cancellation provisions of each applicable section.
| | NCMPUR categorizes probable cause for missing persons into the following categories: |
|
| |
|
| :'''NOTE:''' When exercising cancellation rights under the ''BPCPA'' consumers should be apprised of ss 27 and 28. In most cases, the contract is effectively rescinded by the cancellation; goods must be returned undamaged and payment must be refunded in full. Furthermore, if a supplier will not provide a refund as required under Division 2 of the ''BPCPA'', s 55 stipulates that a consumer may be entitled to recover the refund as a debt due.
| | * Abduction by stranger |
| | * Accident |
| | * Wandered Off |
| | * Parental Abduction with Custody Order |
| | * Parental Abduction without Custody Order |
| | * Abducted by Relative |
| | * Runaway |
| | * Presumed Dead |
| | * Human Trafficking |
| | * Unknown |
|
| |
|
| == A. Direct Sales ==
| |
|
| |
|
| When a consumer is approached by a salesperson, instead of making a conscious decision to seek out a product or service, they may be taken unaware and can be vulnerable to being taken advantage of. The ''BPCPA'' recognizes this risk by imposing disclosure requirements and allowing a consumer to cancel the contract in ways the common law does not permit.
| | In British Columbia, there is no waiting period to report someone missing and anyone can make a report. Furthermore, you do not need to be a member of the missing persons immediately family to make a report. Before contacting police, you may want to reach out to family members, friends, loved ones and next of kin prior to filing a report. However, if these attempts at gaining information on an individuals whereabouts are unsuccessful, reporting to police is the best next step. You can expect the following from police when making a report : |
|
| |
|
| A '''direct sales contract''' is defined in s 17 as:
| | * Report will be taken seriously, and investigation started without delay. |
| | * Conducting a thorough investigation, including risk assessment, focused on the safety and wellbeing of the missing person |
| | * Offer information about supports or resources that may be available, designate a contact person within the police force to support ongoing communication, and keep you updated on the investigation, as appropriate |
| | * Consult with the family or reportee before releasing information or photographs of the missing person to the media, unless doing so would jeopardize the missing person or the investigation, for example by creating delays. |
| | * When a missing person has been found, attend the location in person to confirm their identity and wellbeing. To balance respect for privacy with police duty to investigate safety concerns, this may be handled differently in some circumstances. |
| | * Not close a file until the missing person has been located and their identity has been established. |
| | * Not share information about the location of a found missing adult without their permission. Police may also keep this information confidential in certain cases involving minors, depending on the circumstances. |
| | * Where appropriate, work with other agencies to promote a found missing person’s ongoing safety and limit recurring reports involving the same person, or to prevent others from going missing in similar circumstances. |
|
| |
|
| ...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 funeral contract, interment right contract or preneed cemetery or funeral services contract (see ''Cremation, Interment and Funeral Services Act'' and its associated regulations which, like the ''BPCPA'' and its regulations, are enforced by Consumer Protection BC);
| |
| * A contract for which the total price payable by the consumer, not including the total cost of credit, is less than a prescribed amount of $50 (''Consumer Contracts Regulation'' B.C. Reg 272/2004 s 4 [''CCR'']); and
| |
| * A prepaid purchase card.
| |
|
| |
|
| The ''BPCPA'' sets out a lengthy list of requirements under ss 19 and 20 for the content of direct sales contracts, such as the name, address, and telephone number of the seller, the name (in a readable form) of the individual who signs the contract on behalf of the supplier, a detailed description of the goods or services to identify them with certainty, the price, and a detailed statement of the terms of payment. When credit is extended (meaning any sort of arrangement where the individual/buyer can pay at a later date), there also needs to be a description of the subject matter of any security interest (such as collateral that the seller may hold in the buyer’s property). This is '''not''' an exhaustive list; please consult the ''BPCPA''.
| | == A. Governing Legislation and Resources == |
|
| |
|
| Under s 5 of the ''CCR'', there are several exemptions to the applicability of the ''BPCPA'' to direct sales contract. Such exemptions include certain classes of direct sellers who are selling goods or services for which they are licensed, registered, or incorporated (s 5(4)), and direct sales contracts that are entered into in certain places, such as agricultural shows or fairs, trade shows, and craft fairs. Direct sellers are also exempt if the seller attends the place following a request that was made at least 24 hours in advance by the consumer or a friend or relative of the consumer who is not an associate of the direct seller. For a full list of exemptions, please consult the ''CCR''.
| | === 1. Legislation === |
|
| |
|
| === 1. Right of Cancellation - Direct Sales ===
| | The Missing Persons Act (the Act) came into force June 9, 2015, setting out the provisions for accessing records that will help find missing persons, including special provisions for people who are vulnerable, youth and persons at risk. |
|
| |
|
| Under s 21 of the ''BPCPA'',
| | The Act allows a member of a police force to apply to the court for records to help find a missing person. When there is a risk of serious harm to a missing person or a concern that records could be destroyed, the Act authorizes officers to make an Emergency Demand for Records without going through the court. Section 18 of the Act requires that a report on the use of Emergency Demands for Records must be submitted to the Minister or his or her designate on an annual basis and must be made public. |
| * (a) The purchaser may cancel the contract within '''10 days''' after receiving a copy of the contract. The purchaser need not offer explanations for their decision. The vendor then has 15 days after the date of cancellation to refund all money without deduction;
| |
| * (b) If a delivery date is specified in the contract and not all of the goods/services are delivered/performed within 30 days of this date, the purchaser may cancel the contract within one year after the date a copy of the contract was received, provided that the purchaser has not accepted or used the goods/services; and
| |
| * (c) If the contract does not contain information required under s 19 and 20(1) of the Act, the buyer may cancel within one year of the date of the contract.
| |
|
| |
|
| A direct sale is unenforceable by the seller if the buyer is required to make a down payment in excess of a prescribed amount (''BPCPA'' s 20(3)(b)). In the ''CCR'', s 4(2) sets the amount of down payment prescribed under s 20(3)(b) as the lesser of $100 or 10% of the total price.
| | The Act defines a missing person as an individual whose whereabouts are unknown despite reasonable efforts to locate the individual and: |
|
| |
|
| :'''NOTE:''' Whether the purchaser has '''accepted''' goods is determined by the definition in the ''Sale of Goods Act'' (s 39).
| | 1. who has not been in contact with those persons who would likely be in contact with the individual or; |
|
| |
|
| The ''BPCPA'' does not make oral executory contracts unenforceable. However, s 20(3) requires that the seller gives a written copy of the contract to the buyer at the time of signing. Otherwise, the contract is not binding on the buyer.
| | 2. whose safety and welfare are feared for given: |
| | i) the individuals age |
| | ii) the individual’s physical or mental capabilities, or |
| | iii) the circumstance surrounding the individuals absence |
|
| |
|
| Under s 54, the ''BPCPA'' requires that the buyer provide notice of cancellation to the seller and declares that it may be delivered by any method that permits the cancelling party to produce evidence that the contract was cancelled. Notice by registered mail, electronic mail, personal delivery, and fax are explicitly permitted. Nowhere does the ''BPCPA'' explicitly state that a notice of cancellation shall be in writing, but a buyer should be cautious and deliver '''written notice'''. The section explicitly permits that the notice can be given to the seller directly, or to the postal, fax, or electronic mail address of the seller shown in the contract. When a buyer rescinds a contract under s 21, that section also provides that the goods may be retained until all of the money paid is refunded.
| | === 2. Resources === |
|
| |
|
| In [https://www.canlii.org/en/bc/bcca/doc/1991/1991canlii1408/1991canlii1408.html?autocompleteStr=Woodward%20v%20International%20&autocompletePos=1 ''Woodward v International Exteriors (British Columbia) Ltd'', (1991), 53 BCLR (2d) 397, 1 BLR 254 (CA)] at para 10, verbal notice of termination of an agreement was sufficient for the consumer to terminate this form of contract. Note that verbal notice may not be sufficient in all instances and <u>written notice remains advisable</u>.
| | ==== a. The National Centre for Missing Persons and Unidentified Remains (NCMPUR) ==== |
|
| |
|
| == B. Future Performance Contracts ==
| | NCMPUR is Canada's national centre that provides law enforcement, medical examiners and chief coroners with specialized investigative services in support of missing persons and unidentified remains investigations. |
|
| |
|
| A '''future performance contract''' is defined in s 17 as:
| | One of the NCMPUR’s responsibilities is managing the national public website to provide information on selected cases to the public for the purposes of seeking tips on investigations. |
|
| |
|
| ...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: | | The Canadasmissing.ca website features profiles of missing persons and unidentified remains that have been published at the request of the primary investigator from either police, coroner or medical examiner agency. Furthermore, resources are provided that instruct individuals on how to submit tips, specialized services, and fact sheets. |
| * A contract for which the total price payable by the consumer, not including the total cost of credit (amount to be paid later), is less than a prescribed amount of $50 (''CCR'' s 6);
| |
| * A contract for the supply of goods or services under a “credit agreement”, as defined in s 57 (definitions), if the goods or services have been supplied;
| |
| * A time share contract; or
| |
| * A prepaid purchase card.
| |
|
| |
|
| Future services contracts are subject to some important statutory requirements under Part 4, Division 2 of the ''BPCPA''.
| | ==== b. Travel Reunification Services ==== |
|
| |
|
| The ''BPCPA'' sets out a long list of requirements under ss 19 and 23 for the content of future services contracts, such as the name, address, and telephone number of the seller, a detailed description of the goods or services to identify them with certainty, the price, supply date, and a detailed statement of the terms of payment. When credit is extended (meaning that the supplier allows the individual/ buyer to pay all or part of the purchase price at a later date), there also needs to be a description of the subject matter of any security interest (e.g. collateral). This is '''not''' an exhaustive list; please consult the Act.
| | This is a program designed to assist a parent or a legal guardian who cannot afford to return the abducted child to or within Canada, once the child is located. In order to be eligible for travel assistance, the following guidelines must be met: |
|
| |
|
| Under s 23(4), a future performance contract is not enforceable by the seller if a rebate or discount is given on the condition of some event occurring after the time the buyer agrees to buy (usually a referral selling scheme whereby the purchaser aids the seller in making a further sale).
| | 1. The request for transportation must come from the investigating Police Agency or the Central Authority from the child's home province: |
| | *A law enforcement agency investigating a child abduction complaint; |
| | *A representative of a Canadian Central Authority pursuant to the Hague Convention on the Civil Aspects of International Child Abduction; or |
| | *An agency designated by NCMPUR Operations. |
|
| |
|
| If the future performance contract does not contain the required information (ss 19 and 23), then a consumer may cancel the contract by giving notice of cancellation to the supplier within '''one year''' of the date that the consumer receives a copy of the contract (s 23(5)). The required form and procedure for giving notice is set out in s 54.
| | 2.The requesting agency is responsible for assessing the financial status of the family and determining if transportation should be provided. (For example: whether the requesting parent's financial circumstances would make paying for the child and/or parent's transportation prohibitive). |
|
| |
|
| == C. Continuing Services Contracts: Gym Memberships, Travel or Vacation Clubs==
| | 3.Assistance will be limited to child abduction situations, including situations where the child is abducted by parent or legal guardian. |
|
| |
|
| These contracts are called continuing services contracts because, while you may pay now, the contract extends into the future. This type of contract is often used when one joins a karate club or a dance studio, or buys a membership in a vacation club.
| | 4.Assistance will be provided to transport: |
| | *In the case of older abducted children, home; and |
| | *In the case of younger children, enable the left behind parent or legal guardian to travel to the jurisdiction where the child is and return home. |
|
| |
|
| Continuing services contracts must not exceed 24 months in duration, including all options to extend or renew the contract (s 24(3)), but may allow the consumer to renew the contract in writing within one month of the expiry of the contract (s 24(4)). If a contract does not comply with s 24(3) or is not validly renewed pursuant to s 24(4), alternative remedies are available under s 24(6):
| | 5.In some cases, it may be appropriate for a person other than the left behind parent or legal guardian to retrieve the child and accompany the child home. |
| * a) The contract is not binding on the consumer for the period beyond 2 years;
| |
| * b) Within 15 days of the consumer’s request, the supplier must refund to the consumer all money paid for the period beyond 2 years; and
| |
| * c) If the supplier does not comply with part (b), the consumer may recover that money as a debt due.
| |
|
| |
|
| === 1. Right of Cancellation ===
| | 6.If the left behind parent is travelling to retrieve the child, the requesting authority must make every reasonable effort to confirm/ensure that the parent will be able to obtain legal physical custody of the child. For example, consideration should be given to whether a return order is pending or under appeal, the child's whereabouts are known, there are legal impediments to the child's removal, etc. |
|
| |
|
| Because they are often sold at high-pressure presentations, these contracts are subject to a '''10 day''' right of cancellation from the date the consumer receives a copy of the contract (s 25(6)). A 10 day right of cancellation also applies to time-share interests that are not covered by the ''Real Estate Development Marketing Act'', SBC 2004, c 41, such as resorts or condominiums (s 26(3)).
| | 7.The requesting agency must ensure that the parent or legal guardian has all the necessary documents in order to retrieve the child. For example: child's birth certificate; custody order; passport and any other necessary travel documents. |
|
| |
|
| Contracts for continuing services can also be cancelled if there is a '''material change''' in circumstances of the buyer or the seller, and where the buyer or seller gives notice of cancellation (s 25). When alleging a material change in circumstances as the basis for cancelling, the reason must be specified in the notice (s 25(2)).
| | 8.Assistance will not be provided to transport the abductor, even if he or she is the person able to accompany the child home. |
|
| |
|
| Material changes in circumstances include, but are not limited to:
| |
| * The buyer’s death; and
| |
| * Permanent disability or permanent relocation further than 30 km further from when the consumer entered into the contract.
| |
|
| |
|
| Material changes in circumstances of the seller include:
| | {{LSLAP Manual Navbox|type=chapters1-7}} |
| * Through the partial or entire fault of the seller, the services are not completed, or at any time the seller appears to be unable to reasonably complete the services in the time frame set out in the contract for the completion of services;
| |
| * The services are no longer available because of the seller’s discontinued operation or substantial change in operation; and
| |
| * The relocation of the business of the seller 30 km further from the buyer without provision of equivalent service within 30 km.
| |
| | |
| The required form and procedure for giving notice are set out in s 54.
| |
| | |
| == D. Unsolicited Goods or Services ==
| |
| | |
| Under s 11, unsolicited goods or services means goods or services that are supplied to a consumer who did not request them, other than:
| |
| * Goods or services supplied to a consumer who knew or ought to have known they were intended for delivery to another person;
| |
| * Goods or services for which the supplier does not require payment; or
| |
| * A prescribed supply of goods or services.
| |
| | |
| Under s 12, a recipient of unsolicited goods has no legal obligation to the sender unless the recipient gives notice of an intention to accept them, or unless the recipient knew or ought to have known that the goods were intended for delivery to another person.
| |
| | |
| However, if a consumer does pay for unsolicited goods or services, under s 14 the consumer 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 their intention to accept the goods or services.
| |
| | |
| :'''NOTE:''' 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 them, the goods or services are deemed to be unsolicited goods or services from the time of the material change '''unless''' the supplier can establish that the consumer consented to the material change.
| |
| | |
| == E. Distance Sales ==
| |
| | |
| Under s 17, a “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”. This definition encompasses all forms of commerce where the parties are not face-to-face, such as catalogue sales, sales over the internet, or sales over the telephone. A supplier must give a consumer a copy of the contract within 15 days after the contract is entered into, as per s 48, which also sets out a list of requirements for distance sales contracts. The information that must be disclosed to the consumer prior to the consumer entering into the distance sales contract is set out in s 46. For example, the supplier must disclose a detailed description of the goods, the currency, delivery arrangements and the cancellation policy, if any. This is not an exhaustive list; please see the Act.
| |
| | |
| Additional requirements for contracts that are in electronic form are in s 47. Specifically, the supplier must make the information from s 46 available in a manner that the consumer can access, retain, and print. The supplier must also give the consumer the opportunity to correct errors and accept or decline the contract.
| |
| | |
| Consumer rights concerning cancellation of distance sales contracts are in s 49. Note that there are different time restrictions on cancellation rights for distance sales depending on which provisions the supplier does not comply with. Once a consumer gives notice to the supplier of the cancellation, the supplier has 15 days to refund to the customer all monies paid in respect of the contract and any related consumer transactions (s 50). If the supplier fails to do this, the consumer may have recourse under s 52 if the consumer charged to a credit card all or any part of the total price under the contract, and the consumer may also be entitled to recover the refund as a debt due (s 55).
| |
| | |
| == F. Credit Transactions ==
| |
| | |
| Part 5 of the ''BPCPA'' deals with the disclosure of the cost of consumer credit.
| |
| | |
| The Acts set out disclosure requirements, as well as advertising requirements for both fixed and open credit. The basic distinction between fixed and open credit is that '''open credit''' involves multiple advances and does not establish the total amount advanced under the agreement. However, open credit can be subject to an overall credit limit. '''Fixed credit''' is a credit arrangement that is normally based on a fixed initial advance and a predetermined payment schedule. Under s 105 of the ''BPCPA'', the creditor (lender) is obliged to compensate borrowers for contraventions of the Act.
| |
| | |
| The rules for credit transactions under the ''BPCPA'' are:
| |
| * Under s 66, lenders are required to furnish debtors (borrowers) with a written statement of disclosure. Consult ss 66 – 93 for the specific requirements pertaining to your client’s situation.
| |
| * Under ss 59 – 64, certain requirements flow from the advertising of certain aspects of credit, such as interest-free periods, interest rates, and cost of credit.
| |
| * Under Division 4 of Part 5, a borrower has certain rights, such as being able to choose an insurer and to cancel optional services.
| |
| * Under s 99, where a credit card is lost or stolen, the holder is not liable for any charges incurred after notice in person or by registered mail has been given to the issuer of the card. In the case of purchases made before notice is given, an individual is only liable for $50 or up to the credit limit remaining on the card, whichever is less. This protection does not extend to situations where a credit card is used with a personal identification number at an ATM (see ''Plater v Bank of Montreal'', [1988] BCWLD 986, 22 BCLR (2d) 308 (Co Ct)).
| |
| | |
| === 1. Notice Required for Increased Interest Rates ===
| |
| | |
| Under s 98, there is a notice requirement for increasing credit card interest rates.
| |
| | |
| === 2. Unsolicited Credit Cards ===
| |
| | |
| A credit card issuer must not issue a credit card to an individual that has not applied for one (s 96). This does not affect the ability of a credit card issuer to provide a renewal or replacement card that has been applied for.
| |
| | |
| === 3. Prepaid Purchase Cards (Gift Certificates and Gift Cards) ===
| |
| | |
| The terms of prepaid purchase cards are regulated under ss 56.1 – 56.5. A prepaid purchase card is a card, written certificate or other voucher with a monetary value that is issued or sold to a person in exchange for the future supply of goods or services. These include gift cards or gift certificates.
| |
| | |
| Under s 56.2, cards are prevented from being issued with an expiry date. ''Prepaid Purchase Cards Regulation'', BC Reg. 292/2008 contains exemptions from the expiry date prohibition. These include cards issued for a specific good or service, cards issued for a charitable purpose, and cards issued to a person who provides nothing of value in exchange.
| |
| | |
| == G. High-Cost Loans (Payday Loans) ==
| |
| | |
| === 1. Criminal Code ===
| |
| | |
| The ''Criminal Code'' prohibits loans that charge a criminal rate of interest (s 347), which is defined as an annual rate that '''exceeds 60 percent'''.
| |
| | |
| Loans offered by payday lenders, if calculated according to the ''Criminal Code'', may charge rates that exceed the amount permitted under the definition. In 2006, the federal government amended the ''Criminal Code'' to '''exempt''' payday loan agreements from the criminal interest rate provision. Payday loan agreements are defined and are exempted from s 347 provided that the following three conditions are met (s 347.1):
| |
| # The loan must be for $1500 or less and for 62 days or less;
| |
| # The person must be licensed or specifically authorized under provincial/territorial law to enter into that payday loan agreement; and
| |
| # The province must be designated by the Governor in Council (which will happen in the province has adequate measures to protect recipients of payday loans).
| |
| | |
| === 2. Payday Loans ===
| |
| | |
| Under the ''Payday Loans Regulation'', BC Reg 57/2009, s 2 designates payday lenders as a “designated activity” under s 142 of the ''BPCPA''. A payday lender “means a person who offers, arranges, provides or otherwise facilitates payday loans to or for consumers” and includes “a person who, for compensation, arranges, negotiates or facilitates an extension of credit”. Anyone who participates in a designated activity must carry a license (s 143). A payday lender must carry a separate license for each operating location. They must have a sign at each location displaying this license number, the maximum charges permitted in BC (15% of principal), the amount they charge, the total cost of borrowing $300 for 14 days, and the annual percentage rate they charge.
| |
| | |
| The regulations also set limits on the amount of interest that can be applied, mirroring s 347 of the ''Criminal Code''.
| |
| * The maximum amount that can be charged on a payday loan is $15 for every $100 borrowed including all charges and fees.
| |
| * In addition, a payday loan cannot exceed 50% of the borrower's net pay to be received during a single pay period within the payday loan term.
| |
| * If the repayment amount is not paid, default fees cannot exceed 30% per annum on the outstanding principal.
| |
| | |
| Thus, payday loans in BC are permitted under ''Criminal Code'' s 347.1, as long as they follow the provincial requirements.
| |
| | |
| These requirements do set out a number of additional restrictions on payday lenders (''BPCPA'' s 112.08). Notably, a payday lender may '''not''':
| |
| * Sell insurance to or for the borrower, or require or request that the borrower insure a payday loan;
| |
| * Issue a new payday loan to a borrower who already has a payday loan issued by the lender;
| |
| * 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;
| |
| * Require, request or accept any undated cheque;
| |
| * 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 (although, a one-time fee of $20 is allowed for a dishonoured cheque or pre-authorized debit – see s 17(2)(b) of the ''Payday Loans Regulation'');
| |
| * Require or request any payment from the borrower before it is due under the loan agreement;
| |
| * Grant rollovers (i.e. charge a fee to extend a loan’s due date);
| |
| * Require, request or accept an assignment of wages from the borrower (and if they do the assignment of wages is not valid);
| |
| * Require, request or accept from the borrower or any other person, as security for a payday loan, any personal property, real property, or documentation that could be used to transfer title in personal property or real property; or
| |
| * 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.
| |
| | |
| Additionally, there is a mandatory period set out in the regulations where a consumer is allowed to return the money and cancel the payday loan. This period begins on the date that the borrower receives the first advance and expires at the end of the second day that the payday lender is open for business after that first advance (''Payday Loans Regulation'' s 14.2(1)).
| |
| | |
| === 3. High-Cost Credit Products ===
| |
| | |
| Legislation designed to protect consumers from lenders who offer loans with high interest rates but are not payday lenders received royal assent in May 2019, but requires regulations to be passed before coming into force.
| |
| | |
| High-cost credit products are loans or lines of credit that charge high interest rates and/or various fees. The formal definition of a '''High-Cost Credit Product''' is:
| |
| * (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 (e.g. a loan) is extended by a high-cost credit grantor to a borrower (e.g. the consumer) primarily for a personal, family or household purpose, but does not include a payday loan, mortgage on real property or prescribed credit product.
| |
| | |
| :'''NOTE:''' Because interest rates can be compounded (interest on interest) at different frequencies (usually monthly, but can also be annually, semi-annually, quarterly, weekly, daily, or even continuously – which is set by the lender as a term of the contract for the loan or other credit arrangement), annual percentage rate (APR) is the convention for quoting interest rates on an annual basis. Since legislation also expresses interest rates in APR, this allows one to directly compare the APR-quoted interest rate from the contract to the APR-quoted limit in the statute.
| |
| | |
| Once the regulations are passed, a new part (Part 6.3 which is not yet in effect) will be added to the ''BPCPA'' that creates restrictions on high-cost credit products. The new regime limits a credit grantor (the lender) to a prescribed rate (or the criminal rate, if none is prescribed), requires certain terms to be in high-cost credit agreements, and requires that the credit grantor not charge, require, or accept any amount not allowed (such as a fee for making a payment before it is due), not disclosed, or that exceeds the high-cost credit agreement.
| |
| | |
| == H. Remedies and Sanctions ==
| |
| | |
| In addition to the remedies already mentioned that are available to consumers, the ''BPCPA'' provides for further sanctions:
| |
| | |
| === 1. Fines or Imprisonment ===
| |
| | |
| For any contraventions of the ''BPCPA'', s 190 establishes a summary conviction offence with penalties of imprisonment up to one year and fines of up to $10,000 for individuals and $100,000 for corporations. .
| |
| | |
| === 2. Investigation and Search Powers ===
| |
| | |
| Part 10 gives the Director the power to investigate and request information where there are reasonable and probable grounds to believe that a person has contravened, is contravening, or is about to contravene the ''BPCPA'' or an order made under it.
| |
| | |
| | |
| {{REVIEWED LSLAP | date= August 8, 2021}}
| |
| {{LSLAP Manual Navbox|type=chapters8-14}} | |
