C-426
Second Session, Fortieth Parliament,
57-58 Elizabeth II, 2009
HOUSE OF COMMONS OF CANADA
BILL C-426
An Act to amend the Bank Act and other Acts (cost of borrowing for credit cards)
first reading, June 18, 2009
Mr. Thibeault
402276
SUMMARY
This enactment amends the Bank Act, the Cooperative Credit Associations Act, the Insurance Companies Act and the Trust and Loan Companies Act to set the maximum rate that may be charged for the cost of borrowing in respect of credit cards.
Also available on the Parliament of Canada Web Site at the following address:http://www.parl.gc.ca
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2nd Session, 40th Parliament,
57-58 Elizabeth II, 2009
house of commons of canada
BILL C-426
An Act to amend the Bank Act and other Acts (cost of borrowing for credit cards)
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
1991, c. 46
BANK ACT
1. Section 452 of the Bank Act is amended by adding the following after subsection (2):
Rate per annum — credit cards
(2.1) No bank shall charge the holder of a credit card issued by the bank a rate per annum in respect of the cost of borrowing that exceeds by more than five per cent the current Bank of Canada target for the overnight rate.
2. Section 570 of the Act is amended by adding the following after subsection (2):
Rate per annum — credit cards
(2.1) No authorized foreign bank shall charge the holder of a credit card issued by the bank a rate per annum in respect of the cost of borrowing that exceeds by more than five per cent the current Bank of Canada target for the overnight rate.
1991, c. 48
COOPERATIVE CREDIT ASSOCIATIONS ACT
3. Section 385.18 of the Cooperative Credit Associations Act is amended by adding the following after subsection (3):
Rate per annum — credit cards
(3.1) No retail association shall charge the holder of a credit card issued by the retail association a rate per annum in respect of the cost of borrowing that exceeds by more than five per cent the current Bank of Canada target for the overnight rate.
1991, c. 47
INSURANCE COMPANIES ACT
4. Section 482 of the Insurance Companies Act is amended by adding the following after subsection (2):
Rate per annum — credit cards
(2.1) No company shall charge the holder of a credit card issued by the company a rate per annum in respect of the cost of borrowing that exceeds by more than five per cent the current Bank of Canada target for the overnight rate.
1991, c. 45
TRUST AND LOAN COMPANIES ACT
5. Section 438 of the Trust and Loan Companies Act is amended by adding the following after subsection (2):
Rate per annum — credit cards
(2.1) No company shall charge the holder of a credit card issued by the company a rate per annum in respect of the cost of borrowing that exceeds by more than five per cent the current Bank of Canada target for the overnight rate.
Published under authority of the Speaker of the House of CommonsAvailable from:Publishing and Depository ServicesPublic Works and Government Services Canada