O. Reg. 168/07: GENERAL

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ontario regulation 168/07

made under the

consumer protection act, 2002

Made: April 25, 2007
Filed: April 26, 2007
Published on e-Laws: April 27, 2007
Printed in The Ontario Gazette: May 12, 2007

Amending O. Reg. 17/05

(General)

1. Section 53 of Ontario Regulation 17/05 is amended by adding the following definition:

“payday credit agreement” means a credit agreement for fixed credit under which,

(a) the total of the advances does not exceed $1,500,

(b) each advance is made in exchange for a post-dated cheque, a pre-authorized debit or a future payment of a similar nature but not for any overdraft protection or security on property and not through a margin loan or pawnbroking, and

(c) the term does not exceed 62 days,

but does not include a supplier credit agreement or a prospective consumer agreement under which an extension of credit, loan of money or supplier credit agreement may occur in the future. (“convention de crédit sur salaire”)

2. (1) Paragraph 5 of subsection 54 (1) of the Regulation is amended by adding “In the case of a credit agreement that is not a payday credit agreement” at the beginning.

(2) Paragraph 6 of subsection 54 (1) of the Regulation is amended by adding “In the case of a credit agreement that is not a payday credit agreement” at the beginning.

3. The Regulation is amended by adding the following sections:

Poster for payday credit agreements

61.1 (1) A lender under a payday credit agreement shall display a poster at the lender’s place of business that is visible to borrowers immediately upon entering the place of business and that complies with this section.

(2) If a loan broker assists a borrower to obtain credit or a loan of money, whether from a lender or a creditor who is not in the business of extending credit or lending money, then, in addition to the poster that subsection (1) requires the lender to display, the loan broker shall display a poster at the loan broker’s place of business that is visible to borrowers immediately upon entering the place of business and that complies with this section.

(3) The poster shall be of a minimum size of 61 centimetres in width by 76 centimetres in length and have a 5 centimetre wide border of the colour purple, pantone number 2665.

(4) The poster shall consist of the following:

1. A heading setting out,

i. the total cost of borrowing per each $100 advanced under the agreement in 144 point font, and

ii. the words “Per $100 borrowed” in 72 point font.

2. A subheading in 54 point font with the words “Example: $300 loan for 14 days”.

3. The following in 54 point font:

i. the words “Principal Amount $300.00”, and

ii. the words “Total Cost of Borrowing” followed by the total cost of borrowing per each $300 advanced under the agreement.

4. A horizontal line extending across the width of the poster, except for the border, immediately below the text described in paragraph 3.

5. The following in 54 point font: the words “Total to Repay” followed by the total of $300 and the total cost of borrowing per each $300 advanced under the agreement.

6. The words “This information conforms to the requirements of the Consumer Protection Act, 2002” in 36 point font.

. . . . .

Contents of payday credit agreement

62.1 (1) A lender under a payday credit agreement shall deliver to the borrower, no later than upon entering into the agreement,

(a) a copy of the agreement that meets the requirements of subsection (2); and

(b) the amount of principal to be advanced under the agreement.

(2) A payday credit agreement shall contain the following table in 12 point font on the first page of the agreement:

 

	Details of Payday Credit Agreement
Amount Borrowed	A
Loan Term in Days	B
Total Cost of Borrowing	C
Annual Percentage Rate	D
Cost per $100 Borrowed	E
Total to be Repaid	F
Repayment Date	G
Borrower’s Signature	H

where,

A = the amount of principal to be advanced under the agreement,

B = the term of the agreement in days,

C = the cost of borrowing expressed as a total amount,

D = the annual percentage rate,

E = the total cost of borrowing expressed as an amount per $100 advanced under the agreement,

F = the total of all payments that the borrower is required to make in connection with the agreement,

G = the date at which the borrower is required to pay amount F, and

H = the borrower’s signature.

(3) If a loan broker assists a borrower to obtain credit or a loan of money and the creditor is not in the business of extending credit or lending money,

(a) the obligation that clause (1) (a) would impose on a lender shall be deemed to be an obligation of the loan broker and not the creditor; and

(b) the obligation that clause (1) (b) would impose on a lender shall be deemed to be an obligation of the creditor.

(4) If a payday credit agreement does not meet the requirements of subsection (2) and the borrower has paid any of the cost of borrowing, the borrower may demand a refund by giving notice to the following person in accordance with section 92 of the Act within one year of making the payment:

1. The lender if a loan broker has not assisted the borrower to obtain credit or a loan of money.

2. The loan broker if a loan broker has assisted the borrower to obtain credit or a loan of money.

(5) A loan broker who receives a notice demanding a refund under subsection (4) shall promptly forward it to,

(a) the creditor if the creditor is not in the business of extending credit or lending money; or

(b) the lender otherwise.

(6) If a lender or a creditor who is not in the business of extending credit or lending money receives a notice demanding a refund under subsection (4), the lender or the creditor, as the case may be, shall provide the refund within 15 days of receiving the notice.

4. This Regulation comes into force on August 1, 2007.

 

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