Source: https://www.leg.bc.ca/content/legacy/Web/36th4th/1st_read/gov22-1.htm
Timestamp: 2018-01-20 20:34:19
Document Index: 176326043

Matched Legal Cases: ['art 2', 'art\n44', 'art 6', 'art 7', 'art 5', 'art:\n48', 'art 5', 'art 6', 'art 6', 'art 6', 'art 6', 'art 6', 'art 2', 'art 2', 'art 6', 'art 1', 'art 6']

BILL 22 -- 2000: COST OF CONSUMER CREDIT DISCLOSURE ACT
BILL 22 -- 2000
Division 2 -- Application
4 Provision of credit to which this Act does not apply
Part 2 -- Rights and Duties in Relation to All Credit Agreements
Division 1 -- Disclosure Requirements Applicable to All Credit Agreement Arrangements
6 Disclosure statements must be delivered
7 Disclosure in advertisements
8 Form of disclosure statements and statements of account
9 Delivery of documents to multiple borrowers
10 Estimates and assumptions
11 Inconsistency between disclosure statement and credit agreement
Division 2 -- Rights and Obligations of Borrowers and Credit Grantors
12 Borrowers may choose insurer
13 Borrowers entitled to mortgage discharge
14 Borrowers may cancel optional services
15 Prepayment of credit
16 Default charges
17 Invitation to defer payment
18 Acceleration clauses
Division 3 -- Credit Arranged by Loan Brokers
19 Non-business credit grantors
20 Business credit grantors
Division 1 -- Application
22 Credit sales
Division 2 -- Advertising Requirements Applicable to Fixed Credit
23 Advertising for fixed credit
24 Advertising interest-free periods
Division 3 -- Disclosure Required in Relation to Fixed Credit
25 Initial disclosure statements for fixed credit
26 Disclosure regarding changes in interest rate
27 Disclosure regarding increases in outstanding principal
28 Disclosure regarding amendments
29 Disclosure regarding mortgage loan renewals
30 Disclosure regarding non-mortgage renewals
31 Application of this Part
Division 2 -- Advertising Requirements Applicable to Open Credit
32 Advertising for open credit
33 Advertising interest-free periods
Division 3 -- Disclosure Required in Relation to Open Credit
34 Initial disclosure statements for open credit
35 Statements of account
36 Description of transactions
Division 4 -- Credit Cards
38 Credit cards may be issued only on application
39 Applications for credit cards
40 Additional disclosure for credit cards
41 Limitation of cardholder's liability
43 Application of this Part
44 Advertising requirements applicable to leases
45 Disclosure required in relation to leases
46 Maximum liability under residual obligation leases
Part 6 -- Compliance and Offences
48 Refund of overpayment
49 Credit grantors must compensate borrowers for contravention
50 Offences and enforcement
51 Statutory damages
52 Exemplary damages
53 Assignee
54 Other remedies
55 Conflicts
Part 7 -- Regulations and Transitional Provisions
57 Transitional
58-78 Consequential Amendments
79 Commencement
"advance" means value received, within the meaning of subsection (2), by the borrower;
(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
(ii)	one or more associates of the other person, or
(iii)	the person and one or more associates of the person;
"borrower" means an individual who has entered into, or who is negotiating to enter into, a credit agreement if that individual, under that agreement, receives or is to receive credit from another party to the agreement, but does not include a guarantor;
"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 granting of credit to the borrower, and includes an amount that is
(b)	paid to the loan broker by the credit grantor;
"business day", in relation to a credit grantor, means a day on which the credit grantor is open for business;
"cash customer" means a person who buys a product and who provides full payment for the product at or before the time of its receipt;
(i)	an amount that fairly represents the price for which the seller sells that product to cash customers, or
(ii)	if the seller and the borrower agree on a lower price, that lower price,
(c)	for an advertisement by a credit grantor or an associate of the credit grantor, the price at which the product is currently offered to cash customers or, if the credit grantor or associate of the credit grantor does not currently offer the product to cash customers, the price stated in the advertisement,
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;
"court" means the Supreme Court or the Provincial Court;
"credit grantor" means, subject to section 56 (2) (b),
(a)	a person who entered into, or who is negotiating to enter into, a credit agreement if that person, under that agreement, extends or is to extend credit to another party to the agreement, or
(b)	if the rights of the person 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,
and includes a credit card issuer within the meaning of section 37;
"index rate" means, in relation to a credit agreement, the rate that meets the criteria prescribed by the regulations;
"initial disclosure statement" means, in relation to a credit agreement or a lease, the disclosure statement that, under section 6, is required for that credit agreement or lease;
"loan broker" means, subject to section 56 (2) (b), 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 any such loan that is prescribed by the regulations;
(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;
"payment" 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 the term of a lease within the meaning of section 42 (1), is divided for the purpose of determining the amount of 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 established by that record;
"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;
"term", other than in Part 5, means, in relation to the duration of a credit agreement, the period between the first advance and the end of the period in respect of which payments are required under the credit agreement;
"total cost of credit" means the difference between the value given or to be given, within the meaning of subsection (4), by the borrower in connection with a credit agreement and the value received or to be received, within the meaning of subsection (2), by the borrower in connection with the credit agreement, disregarding the possibility of prepayment or default.
(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 for the purposes of subsection (2) (g) that is designated by regulation for the purposes of this subsection:
(ii)	is for services provided by a lawyer chosen by the borrower, or
2	In this Division:
3	(1)	Subject to section 4, this Act applies to a credit agreement if
(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 credit agreement, or is of a class of credit agreements, prescribed by regulation.
(2)	Any waiver or release by a person of the person's rights, benefits or protections under this Act or the regulations is void except to the extent that such waiver or release is expressly permitted by this Act.
Provision of credit to which this Act does not apply
(a)	a credit agreement that is a lease unless the lease
(iii)	is a residual obligation lease within the meaning of section 42 (1),
(iii)	the credit grantor believes in good faith that the statement is true,
(iv)	the credit sale is not assigned in the ordinary course of the credit grantor's business otherwise than as security, and
(v)	the credit sale does not provide for any non-interest finance charges, or
(d)	a credit agreement, or class of credit agreements, exempted by regulation.
5	In this Part:
Disclosure statements must be delivered
6	(1)	Subject to subsection (2), a credit grantor who has entered into, or who is negotiating to enter into, a credit agreement with an individual who is the borrower in relation to that agreement must deliver to the borrower a disclosure statement in relation to the credit agreement before the earlier of
(a)	the date on which the borrower enters into the credit agreement, and
(b)	the date on which the borrower makes any payment in connection with the credit agreement.
(2)	A credit grantor who has entered into, or who is negotiating to enter into, a credit agreement to provide a mortgage loan to an individual who is the borrower in relation to that agreement must, subject to subsection (3), deliver 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 1 (2) (e) or an expense prescribed by regulations for the purposes of this section, 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 1 (2) (e) or an expense prescribed by regulations for the purposes of this section.
(3)	The borrower under a credit agreement referred to in subsection (2) may waive the time period referred to in that subsection subject to and in accordance with any terms and conditions the Lieutenant Governor in Council may, by regulation, prescribe.
7	If a credit grantor who publishes an advertisement or on whose behalf an advertisement is published is, as a result of disclosing certain information in the advertisement, required under this Act to include other information in the advertisement, the credit grantor must ensure that,
(a)	if the information that is required to be included 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 information that is required to be included is disclosed in a conspicuous manner.
8	(1)	A credit grantor who is required to provide a disclosure statement or a statement of account under this Act must ensure that that record
(i)	in writing, or
(ii)	in any other form, consented to by the borrower, that allows the borrower to retain the record for future reference,
(b)	contains the information required under this Act, and
(c)	expresses that information clearly, concisely, in a logical order and in a manner that is likely to bring the information to the borrower's attention.
Delivery of documents to multiple borrowers
9	If there is more than one borrower under a credit agreement, a disclosure statement, notice or other document that, under this Act, is required to be delivered to the borrower may be delivered to any one of the borrowers, and it is unnecessary to deliver a separate disclosure statement, notice or other document to each borrower.
10	Information disclosed under this Act, whether in a disclosure statement or advertisement or otherwise, may be based on an estimate or assumption if
(b)	the estimate or assumption is reasonable and is clearly identified in the document effecting the disclosure as an estimate or assumption.
11	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.
12	(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, at the time of that offer, clearly disclose to the borrower in writing 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
13	(1)	Within 30 days after full repayment of a mortgage, the credit grantor must provide to the borrower a registrable discharge of the mortgage in the form and with the content satisfactory to the registrar appointed under the Land Title Act.
(2)	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 (1).
14	(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 such shorter period of notice as is provided for by the agreement under which the service is provided.
15	(1)	This section does not apply to mortgage loans.
(2)	A borrower is entitled to prepay the full outstanding balance owing under a credit agreement at any time without any prepayment charge or penalty.
16	A credit grantor must not impose, by a credit agreement, any default charges other than the following:
(a)	reasonable charges in respect of legal costs incurred in collecting or attempting to collect a payment;
17	(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, in that invitation, clearly disclose whether or not interest will accrue on the unpaid amount during the period for which payment is deferred.
18	(1)	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.
(2)	Subject to subsection (4), if the credit agreement contains the provision referred to in subsection (1) and the credit grantor wishes, in a situation described in subsection (1), 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.
(3)	The notice referred to in subsection (2) must
(a)	be delivered personally to the borrower or be sent to the borrower by registered mail, and
(iii)	a statement that, unless the default or circumstances described have been remedied within 10 days after the notice was delivered or sent under paragraph (a) of this subsection, the whole amount outstanding under the credit agreement will be due and payable.
(4)	The credit grantor must not accelerate payment under this section if
(a)	the credit grantor fails to comply with subsections (2) and (3), or
(b)	the default by the borrower is remedied within the period specified under subsection (3) (b) (iii).
(5)	If there is a conflict between this section and a provision of any other Act, the provision of that other Act prevails.
19	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 Act and the regulations 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
20	(1)	If a loan broker secures for a borrower an extension of credit from a credit grantor who does provide credit in the ordinary course of carrying on business,
(a)	if the credit grantor deducts a brokerage fee from the value received or to be received by the borrower within the meaning of section 1 (2) and (3), the credit grantor must ensure that the initial disclosure statement for the credit agreement
(b)	if the loan broker takes a loan application from the borrower and forwards it to the credit grantor, the loan broker must give to the borrower
(i)	a disclosure statement containing the information referred to in paragraph (a) of this subsection, and
(ii)	any other information that, under this Act, is required to be disclosed in the initial disclosure statement for the credit agreement.
(b)	elect to deliver to the borrower a separate disclosure statement containing the information that, under this Act, is required to be disclosed.
21	This Part applies only to credit agreements that extend fixed credit.
22	If this Part applies to a credit sale, the credit grantor must ensure that the credit agreement is a scheduled-payments credit agreement.
Advertising for fixed credit
23	(1)	This section applies only to advertisements that
(a)	offer credit to which this Part applies, and
(2)	A credit grantor must ensure that every advertisement to which this section applies that is 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 to which that subsection applies must ensure that,
24	(1)	An advertisement that states or implies that no interest is payable for a certain period in respect of a transaction must disclose whether
(a)	the transaction is unconditionally interest-free during the period, or
(b)	interest accrues during the period but will be forgiven under certain conditions.
(2)	If interest accrues during the period but will be forgiven under certain conditions, the advertisement must also disclose
(a)	those conditions, and
(b)	the APR that will apply to the period if those conditions are not met.
(3)	An advertisement to which subsection (1) applies that does not disclose the information required under subsections (1) (b) and (2) is deemed to represent that the transaction is unconditionally interest-free during the relevant period.
25	(1)	A credit grantor who has entered into or who is negotiating to enter into a scheduled-payments credit agreement must ensure that the initial disclosure statement for that credit agreement discloses the following information:
(e)	the term of the agreement;
(f)	the amortization period if it is longer than the term;
(g)	the date on which interest begins to accrue and the details of any grace period;
(h)	the annual interest rate and the circumstances under which unpaid interest will be compounded;
(i)	if the annual interest rate may change during the term,
(j)	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;
(k)	the amount and timing of any advances to be made after the effective date of the statement;
(l)	the amount and timing of any payments to be made after the effective date of the statement;
(m)	the total of all advances made or to be made in connection with the credit agreement;
(n)	the total of all payments to be made in connection with the credit agreement;
(o)	the total cost of credit;
(p)	the APR;
(q)	the nature of any default charges provided for by the credit agreement;
(r)	a description of the subject matter of any security interest;
(s)	for a mortgage loan, a statement of the conditions, if any, under which the borrower may make prepayments, and any charge for prepayment;
(t)	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;
(u)	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;
(v)	the conditions under which the borrower may terminate services referred to in paragraph (u).
(2)	A credit grantor who has entered into or who is negotiating to enter into a credit agreement that is not a scheduled-payments credit agreement must ensure that the initial disclosure statement for that credit agreement
(a)	discloses the information referred to in subsection (1) (a) to (d), (g) to (j), (m) and (p) to (v), and
(b)	does one of the following:
(i)	discloses the circumstances in which the outstanding balance, or any portion of it, must be paid;
(ii)	specifies the provisions of the credit agreement that describe those circumstances.
26	(1)	In addition to the disclosure statement required under section 25, if the interest rate is a floating rate, the credit grantor must, at least once every 12 months, deliver to 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 delivered to the borrower under this section or section 25;
(2)	In addition to the disclosure statement required under section 25, if the interest rate is not a floating rate but is nevertheless subject to change, the credit grantor must, 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, deliver to the borrower a disclosure statement that contains the following information:
27	(1)	In addition to any other documents that the credit grantor must deliver under this Act to the borrower, the credit grantor must deliver to the borrower a notice in writing in accordance with subsection (2) of this subsection 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
(b)	as a result of the increases 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.
(a)	must be delivered to the borrower, within 30 days after the most recently missed or late payment or default charge imposed, as the case may be, and
(i)	that the outstanding principal has increased, and why,
(ii)	that, because of the increase in principal, the subsequent scheduled payments will not cover the interest that will accrue in each payment period, and
(iii)	what the total outstanding balance will be at the end of the term if the amount of subsequent scheduled payments is not adjusted.
28	(1)	Subject to subsection (3), if a credit agreement is amended, the credit grantor must deliver 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 29 or 30 applies.
29	(1)	If the amortization period for a mortgage loan under a scheduled-payments credit agreement is longer than the term of the mortgage, 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 for a further term.
(2)	A credit grantor who is willing to renew a mortgage must include, with the notice referred to in subsection (1), a disclosure statement, based on the assumption that the borrower will make all payments that are due under the current mortgage, that includes the following information respecting the renewed mortgage:
(b)	the outstanding balance of the mortgage loan as of the effective date;
(c)	any non-interest finance charges that are payable under or in connection with the renewed mortgage;
(d)	the length of the term;
(e)	the relevant interest rate information referred to in section 25 (1) (h) or (i);
(g)	the amount and timing of all payments to be made under or in connection with the renewed mortgage;
(h)	the total of all payments to be made under or in connection with the renewed mortgage;
(3)	In addition to any other legal, equitable or statutory remedy available to the borrower but subject to subsection (4), if a mortgage is to be renewed but the credit grantor does not, at least 21 days before the effective date of the renewed mortgage, deliver to the borrower a disclosure statement that reflects the terms of the renewed mortgage,
(a)	the credit grantor must, on or before the effective date of the renewed mortgage, deliver to the borrower a disclosure statement that reflects the terms of the renewed mortgage,
(b)	the borrower may, within 21 days after receiving the disclosure statement referred to in paragraph (a), pay the outstanding balance of the mortgage loan without penalty, and
(4)	Subsection (3) does not apply if
(a)	a credit grantor delivers to the borrower a disclosure statement in relation to the renewed mortgage at least 21 days before the effective date of the renewed mortgage, and
(b)	that statement does not reflect the terms of the renewed mortgage by reason only that
(i)	the outstanding balance of the mortgage loan on the effective date of the renewed mortgage 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 is lower than the interest rate stated in the disclosure statement, or
(iii)	the amortization period or frequency of payments under the renewed mortgage differs from what was stated in the disclosure statement.
(5)	If subsection (4) applies, the credit grantor must, within 30 days after the effective date of the renewed mortgage, deliver to the borrower a revised disclosure statement that reflects the terms of the renewed mortgage.
Disclosure regarding non-mortgage renewals
30	When a credit agreement that extends fixed credit, other than a mortgage, is renewed, the credit grantor must deliver to the borrower on or before the renewal date a disclosure statement containing the information referred to in section 29 (2) (a) to (k).
31	This Part applies only to credit agreements that extend open credit.
32	A credit grantor must ensure that every advertisement that is published by or on behalf of the credit grantor and that gives specific information about the cost of open credit must,
(a)	if the open credit is not associated with a credit card, disclose the APR for the open credit, or
(b)	if the open credit is associated with a credit card, disclose
33	(1)	An advertisement that states or implies that no interest is payable for a certain period in respect of a transaction under a credit agreement must disclose whether
(b)	the annual interest rate for the period, assuming those conditions are not met.
34	(1)	Subject to subsection (2), 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:
(m)	a telephone number in accordance with section 35 (3).
(i)	in the initial disclosure statement,
(ii)	in the first statement of account delivered to the borrower, or
(iii)	in a separate statement delivered 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 delivered to the borrower before the services are provided or the transaction occurs:
35	(1)	Subject to subsection (2), the credit grantor must deliver to 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 delivered under this section, from the date of the statement of account most recently delivered to the borrower;
(d)	the posting date, and amount of each payment or credit subtracted from the outstanding balance during the statement period;
(ii)	given notice to the borrower that the borrower's privileges to obtain advances under the agreement have been cancelled or suspended due to the default.
(3)	The credit grantor must, for the purposes of section 34 (1) (m) and subsection (1) (n) of this section, provide a telephone number that the borrower can use to obtain information about the borrower's account during the credit grantor's ordinary business hours and without incurring any charges for the call, and the credit grantor must ensure that that information is available at that number during those hours.
36	A transaction is sufficiently described for the purposes of section 35 (1) (c) and (d) if the description in the statement of account, along with any transaction record included with the statement of account or made available to the borrower at the time of the transaction, can reasonably be expected to enable the borrower to verify the transaction.
37	In this Division:
38	(1)	A credit card issuer must not issue a credit card to an individual who has not applied for the card.
39	(1)	A credit grantor 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):
(b)	if the interest rate payable under the credit agreement is a floating rate of interest, the index rate and the manner by which that rate is to be modified to obtain the interest rate payable under the credit agreement;
(2)	Instead of disclosing the information required by subsection (1), the application form may disclose a telephone number that the cardholder can use to obtain that information during the credit card issuer's ordinary business hours and without incurring any charges for the call, and the credit card issuer must ensure that that information is available at that number during those hours.
(5)	Nothing in this section relieves the credit card issuer from the requirement to deliver a disclosure statement in accordance with sections 6 and 34.
40	(1)	In addition to the disclosure required by section 34, 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.
(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
41	(1)	A cardholder who has, orally or in writing, reported 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.
(a)	$50, and
(b)	the maximum amount set by the credit agreement in relation to the credit card.
42	(1)	In this Part and in the regulations:
(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;
(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" means, in relation to leased goods,
(a)	if 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 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 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 value" means the reasonable estimate, made by the lessor at the time the lease agreement was entered into, of the wholesale value of the leased goods at the end of the term;
(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;
"realizable value" has the meaning prescribed by the regulations;
"residual obligation lease" means a lease under which, subject to section 46, the lessee may be required at the end of the lease term to pay the lessor an amount based wholly or partly on the difference, if any, between the estimated residual value and the realizable value of the leased goods;
"term", in relation to the duration of a lease, means the period during which the lessee is entitled to retain possession of the leased goods;
(2)	The definitions in section 1 (1), except for the definition of "term", as those definitions are supplemented by section 1 (2) to (4), apply to this Part and for that purpose a reference in section 1 (1), (2), (3) or (4) 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.
43	This Part applies only to a lease that
(a)	is for a fixed term of 4 months or more,
(b)	is for an indefinite term or is renewed automatically until one of the parties takes positive steps to terminate it, or
(c)	is a residual obligation lease.
44	A lessor must ensure that every advertisement that is published by or on behalf of the lessor and that gives specific information about the cost of a lease discloses the following information:
(a)	that the transaction is a lease;
45	(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:
(b)	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 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;
(q)	the total lease cost.
(2)	The circumstances referred to in subsection (1) (n) include, without limitation, unreasonable wear or excess use.
46	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.
47	In this Part:
48	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 grantors must compensate borrowers for contravention
49	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, and the balance may
(b)	be recovered in an action.
50	(1)	Sections 63 to 74 and 76 of the Consumer Protection Act apply to this Act, and for that purpose,
(a)	a reference to "director" in those sections, as they apply for the purposes of this Act, and in subsection (2) of this section has the same meaning as in that Act, and
(b)	a reference in section 76 of that Act, as that section applies for the purposes of this Act, to "section 75" is deemed to be a reference to subsections (2) to (6) of this section.
(a)	contravenes section 6 (1) or (2), 7, 8 (1), 12 (2), 13, 15 (3), 16, 18 (4), 19, 20 (1), 22, 23 (2) or (3), 25, 26, 27, 28 (1) or (2), 29 (2), 30, 32, 34, 35, 38, 39 (1) or (3), 40, 44 or 45 (1) of this Act or an order of the director or minister under this Act or the regulations,
(b)	refuses or fails to furnish information as required under this Act or the regulations,
(c)	furnishes false information to a person acting under this Act or the regulations,
(d)	fails to comply with an order of a court under this Act or the regulations, or
(e)	fails to provide the notice required by regulation.
(3)	Subject to subsection (4), a person who commits an offence under subsection (2) is liable to a fine not exceeding $10 000 or to imprisonment for a period of not more than one year, or to both.
(4)	If a corporation is convicted of an offence under subsection (2), the maximum penalty that may be imposed on the corporation is $100 000.
(5)	If a corporation is guilty of an offence under subsection (2),
(a)	every director and officer, and
(b)	every other person
who authorized, permitted or acquiesced in the offence is guilty of the offence personally and is liable to the penalties set out in subsection (3), but this does not affect the prosecution of the corporation for the same offence.
(6)	A proceeding under this section must not be instituted more than 2 years after the date on which the subject matter of the proceeding arose.
(7)	Section 5 of the Offence Act does not apply to this Act or the regulations.
51	(1)	For the purposes of this section,
(a)	a contravention of this Act or the regulations by a credit grantor is an excusable error if
(i)	the credit grantor had a compliance procedure when the contravention occurred,
(ii)	the contravention was accidental or the result of an employee's or agent's failure to follow the compliance procedure, and
(iii)	on discovering the contravention, the credit grantor promptly complies with sections 48 and 49 and otherwise remedies the contravention, and
(b)	a credit grantor is considered to have a compliance procedure if the credit grantor
(i)	requires its employees and agents to follow procedures, or has implemented automated procedures, designed to ensure compliance with this Act and the regulations and, in particular, to ensure that borrowers receive the information to which they are entitled at the time and in the form required by this Act and the regulations, and
(ii)	monitors the effectiveness of the measures mentioned in subparagraph (i) and promptly remedies any deficiencies discovered in their design or implementation.
(2)	If a credit grantor contravenes this Act or the regulations and the contravention is not an excusable error, the borrower is entitled to recover from the credit grantor the statutory damages provided for by this section.
(3)	Subject to subsections (4) and (5), the statutory damages for a contravention of this Act or the regulations referred to in subsection (2) are the lesser of
(a)	$500, and
(b)	5% of whichever of the following is applicable:
(i)	for a contravention in relation to a credit agreement for fixed credit, the maximum outstanding balance;
(ii)	for a contravention in relation to a lease, the capitalized amount within the meaning of section 42 (1);
(iii)	for a contravention in relation to a credit agreement for open credit with a specified credit limit, the credit limit.
(4)	If a contravention of this Act or the regulations relates to a statement of account for open credit, the statutory damages are equal to the sum of
(a)	the interest for the period covered by the statement of account, and
(b)	any non-interest finance charges for the period covered by the statement of account.
(5)	The court may reduce the statutory damages to which a borrower would otherwise be entitled under this section if the court is satisfied, in view of all the circumstances, including any undertakings as to future compliance with this Act and the regulations that are given by the credit grantor, that it would be just and equitable to do so.
(6)	The statutory damages to which a borrower is entitled may be set off against any money then due and payable under the credit agreement, and the balance may
52	Nothing in this Part precludes a court from awarding exemplary damages to a borrower against a person who has deliberately contravened this Act or the regulations or in any case in which the court considers that the conduct of that person justifies an award of exemplary damages.
53	(1)	Subject to this section, a borrower may assert against a person to whom the rights of a credit grantor have been assigned, any rights or remedies that the borrower could have asserted under section 11, 48, 49 or 51 against the original credit grantor.
(2)	The assignee's maximum liability under subsection (1) is limited to the lesser of
(a)	the outstanding balance at the time of the assignment, and
(b)	the proportion of the outstanding balance that is assigned to the assignee.
(3)	An assignee incurs no liability under this section for a credit grantor's contravention of this Act or the regulations unless
(a)	the assignee knew of the contravention before the borrower received notice of the assignment,
(b)	the contravention consists of the credit grantor's failure to deliver a disclosure statement to the borrower when required by this Act, or
(c)	the contravention is apparent on the face of a disclosure statement, or by comparing the disclosure statement with the written terms of the credit agreement.
(4)	An assignee is entitled to rely in good faith on a borrower's signed acknowledgment of receipt of a disclosure statement.
54	Any remedy under this Part is in addition to and does not derogate from any other legal, equitable or statutory remedy.
55	If there is a conflict between a provision of this Act, or a regulation made under this Act, and a provision of any other enactment, the provision of this Act or the regulation made under this Act prevails unless the other enactment expressly provides otherwise.
56	(1)	The Lieutenant Governor in Council may make regulations referred to in section 41 of the Interpretation Act.
(b)	prescribing, in relation to circumstances in which there are more than one credit grantor or more than one loan broker, which member of that class constitutes the credit grantor or the loan broker, as the case may be, for the purposes of this Act or of one or more specified provisions of this Act;
(c)	respecting the manner in which the following are to be calculated:
(i)	APR;
(ii)	the penalty payable for the early termination of a lease;
(iii)	any other matter that under this Act is to be determined by a calculation if this Act does not specify the manner of that calculation;
(d)	respecting the criteria to be used in determining what constitutes an index rate;
(e)	prescribing those loans of money secured by an interest in real property that do not constitute mortgage loans for the purposes of section 1;
(f)	prescribing credit agreements, or classes of credit agreements, to which this Act applies for the purposes of section 3 (c) (iii);
(g)	prescribing credit agreements, or classes of credit agreements, to which this Act does not apply for the purposes of section 4 (d);
(h)	respecting the form and manner in which information required to be disclosed under this Act, including information that is required under this Act to be disclosed in an advertisement, must be disclosed;
(i)	without limiting paragraphs (a) or (h), defining, for the purposes of advertisements, what constitutes a representative transaction, and prescribing information that must be included in any advertisement that refers to one or more representative transactions;
(j)	respecting the manner in which the estimated residual cash payment and the realizable value of the leased goods is to be calculated for the purposes of Part 5;
(k)	designating any thing received or to be received by a borrower as value received or to be received by a borrower for the purposes of section 1 (2) (g);
(l)	designating any thing received or to be received by a borrower as not constituting value received or to be received by a borrower for the purposes of section 1 (3) (c);
(m)	designating anything given or to be given by a borrower as value given or to be given by a borrower for the purposes of section 1 (4) (c);
(n)	prescribing expenses for the purposes of section 6 (2) (a) or (b);
(o)	respecting terms and conditions on which an individual may waive the time period referred to in section 6 (3);
(p)	prescribing the portion of any non-interest finance charges that must be refunded or credited under section 15 (3);
(q)	prescribing information regarding extra charges for the purposes of section 44 (g);
(r)	respecting the form, contents and manner in which information or records may be disclosed or delivered under this Act and the regulations and, for any manner of delivery prescribed, prescribing the time on which a record delivered in accordance with that manner is deemed to be received by the person to whom it is delivered;
(s)	requiring credit grantors or loan brokers or one or more classes of credit grantors or loan brokers to retain one or more records required under this Act for a specified period and prescribing when, how and to whom those records must be made available for examination, extracts and copying;
(t)	exempting, generally or in specified circumstances, certain classes of persons from all or any part of the Act or regulations;
(u)	respecting any matter the Lieutenant Governor in Council considers necessary for carrying out the purposes of this Act, including matters in respect of which no express provision or only partial or imperfect provision has been made.
(3)	A regulation under subsection (2) (r) may prescribe different information that may be or is to be disclosed or delivered under this Act and the regulations, and different forms and manners in which information may be disclosed or delivered, for different classes of persons.
57	(1)	Subject to subsections (2), (3) and (4), this Act applies only to credit agreements and leases entered into on or after the coming into force of this Act.
(2)	This Act applies to all credit agreements for open credit, whether they are entered into before, on or after the coming into force of this Act.
(3)	This Act applies to credit agreements for fixed credit and leases that are renewed or amended on or after the coming into force of this Act.
(4)	Section 13 of this Act applies to the discharge of all mortgages, whether the mortgage for which the discharge is being furnished is entered into before, on or after the coming into force of this Act.
58 Section 1 of the Consumer Protection Act, R.S.B.C. 1996, c. 69, is amended by repealing the definition of "credit card".
59 Section 10 (5) is amended by striking out ", except for a lender's failure of the type described in section 50 (1) (a) or (b),".
60 Sections 41 to 50 are repealed and the following substituted:
47	(1)	In this section, "unsolicited goods" means personal property that is delivered to a person but that has not been requested by that person, but does not include personal property delivered to the recipient that the recipient knew or ought to have known was intended for delivery to another person.
(2)	If unsolicited goods are received, the recipient has no legal obligation in respect of those goods unless and until the recipient expressly acknowledges to the sender in writing his or her intention to accept the unsolicited goods.
(3)	Unless the acknowledgment referred to in subsection (2) has been given, the sender does not have a cause of action for any loss, use, misuse, possession, damage or misappropriation in respect of the unsolicited goods or the value obtained by the use of the unsolicited goods.
61 Section 75 (1) (a) is amended by striking out "41, 42, 45, 48 (2) or (3), 49 (2),".
62 Section 77 (1) (e) is repealed.
63 Sections 10, insofar as it enacts section 15.1 of the Mortgage Brokers Act, and 12 to 14 of the Finance and Corporate Relations Statutes Amendment Act, 1998, S.B.C. 1998, c. 7, are repealed.
64 Section 244 (2) (a) and (c) of the Financial Institutions Act, R.S.B.C. 1996, c. 141, is amended by adding ", a provision of the Cost of Consumer Credit Disclosure Act that is prescribed under section 244.1" after "the regulations".
244.1	(1)	In this section, "director" has the same meaning as in the Consumer Protection Act.
(2)	For the purposes of this section, the Lieutenant Governor in Council may prescribe provisions of the Cost of Consumer Credit Disclosure Act.
(3)	A regulation under subsection (2) may also
(a)	identify certain rights and powers, including rights and powers relative to investigations, inquiries and enforcement, and rights and powers to impose enforcement remedies and penalties, that may be exercised by the superintendent or the director under one or more of this Act, the Cost of Consumer Credit Disclosure Act and Part 6 of the Consumer Protection Act,
(b)	prescribe which of those rights and powers, if any, may be exercised by the superintendent, and which of those rights and powers, if any, may be exercised by the director, relative to a prescribed provision of the Cost of Consumer Credit Disclosure Act, and
(c)	apply, in whole or in part, one or more provisions of this Act, the Cost of Consumer Credit Disclosure Act and Part 6 of the Consumer Protection Act to any exercise by the superintendent or the director of a right or power that the superintendent or the director, respectively, would not, without the regulation referred to in paragraph (b) of this subsection, otherwise be entitled to exercise.
(4)	If the Lieutenant Governor in Council makes a regulation under subsection (2),
(a)	the superintendent and the director each have and may exercise, in relation to the prescribed provisions of the Cost of Consumer Credit Disclosure Act, the rights and powers, if any, respectively prescribed for them under subsection (3) and, without limiting this, the rights and powers of the superintendent under sections 244, 246 and 248 to 251 are available to be exercised by the superintendent or the director, as the case may be, in relation to any person who contravenes a prescribed provision of the Cost of Consumer Credit Disclosure Act, and
(b)	Part 6 of the Cost of Consumer Credit Disclosure Act applies in respect of the contravention.
(5)	Nothing in this section affects the rights and powers that may be exercised by the director in relation to a provision of the Cost of Consumer Credit Disclosure Act that is not prescribed under subsection (2) of this section.
66 Sections 16 and 44 of the Miscellaneous Statutes Amendment Act (No. 3), 1999, S.B.C. 1999, c. 39, are repealed.
67 Section 8 (1) of the Mortgage Brokers Act, R.S.B.C. 1996, c. 313, as that section is re-enacted by section 3 of the Finance and Corporate Relations Statutes Amendment Act, 1998, S.B.C. 1998, c. 7, is amended by adding the following paragraph:
(f)	the person is in breach of a provision of the Cost of Consumer Credit Disclosure Act prescribed under section 9.1 (2) of this Act.
68 The following section is added:
9.1	(1)	In this section, "director" has the same meaning as in the Consumer Protection Act.
(a)	identify certain rights and powers, including rights and powers relative to investigations, inquiries and enforcement, and rights and powers to impose enforcement remedies and penalties, that may be exercised by the registrar or the director under one or more of this Act, the Cost of Consumer Credit Disclosure Act and Part 6 of the Consumer Protection Act,
(b)	prescribe which of those rights and powers, if any, may be exercised by the registrar, and which of those rights and powers, if any, may be exercised by the director, relative to a prescribed provision of the Cost of Consumer Credit Disclosure Act, and
(c)	apply, in whole or in part, one or more provisions of this Act, the Cost of Consumer Credit Disclosure Act and Part 6 of the Consumer Protection Act to any exercise by the registrar or the director of a right or power that the registrar or director, respectively, would not, without the regulation referred to in paragraph (b) of this subsection, otherwise be entitled to exercise.
(a)	the registrar and the director each have and may exercise, in relation to the prescribed provisions of the Cost of Consumer Credit Disclosure Act, the rights and powers, if any, respectively prescribed for them under subsection (3) and, without limiting this, the rights and powers of the registrar under sections 8 and 8.1 of this Act are available to be exercised by the registrar or the director, as the case may be, in relation to any person, registered under this Act, who contravenes a prescribed provision of the Cost of Consumer Credit Disclosure Act, and
69 The heading to Division 1 of Part 2, as enacted by section 8 of the Finance and Corporate Relations Statutes Amendment Act, 1998, S.B.C. 1998, c. 7, is repealed and the following substituted:
Division 1 -- Application .
70 Section 15, as re-enacted by section 9 of the Finance and Corporate Relations Statutes Amendment Act, 1998, S.B.C. 1998, c. 7, is repealed.
71 The following section is added:
15.01	The Lieutenant Governor in Council may prescribe one or more mortgage transactions or classes of mortgage transactions for the purposes of this section and may, for each prescribed mortgage transaction or each mortgage transaction of a prescribed class of mortgage transactions, prescribe
(a)	the provisions of the Cost of Consumer Credit Disclosure Act that apply to that mortgage transaction, and
(b)	the person who, in relation to that mortgage transaction, must comply with, and who is otherwise subject to, the Cost of Consumer Credit Disclosure Act provisions in relation to that mortgage transaction.
72 Section 15.2 (a), as enacted by section 10 of the Finance and Corporate Relations Statutes Amendment Act, 1998, S.B.C. 1998, c. 7, as that section 10 was amended by section 15 of the Miscellaneous Statutes Amendment Act (No. 3), 1999, S.B.C. 1999, c. 39, is amended by striking out "16,".
73 The heading of Division 2 of Part 2, as enacted by section 11 of the Finance and Corporate Relations Statutes Amendment Act, 1998, S.B.C. 1998, c. 7, is repealed.
74 Sections 16 and 17 are repealed.
75 Section 22 (1), as re-enacted by section 17 (a) of the Finance and Corporate Relations Statutes Amendment Act, 1998, S.B.C. 1998, c. 7, as that section 17 (a) was amended by section 18 of the Miscellaneous Statutes Amendment Act (No. 3), 1999, S.B.C. 1999, c. 39, is amended
(a)	in paragraph (a) by striking out "16 (1),", and
(b)	in paragraph (b, by striking out "15.1 (2) or (3), 16 (3.2), 16.1,".
76 Section 23 (2) (h), as re-enacted by section 18 (b) of the Finance and Corporate Relations Statutes Amendment Act, 1998, S.B.C. 1998, c. 7, as that section 18 (b) was amended by section 19 of the Miscellaneous Statutes Amendment Act (No. 3), 1999, S.B.C. 1999, c. 39, is amended by striking out "sections 16, 17.3 and 17.4, notices under section 16," and substituting "sections 17.3 and 17.4,".
77 Section 23 (2) (h.1), as enacted by section 18 (b) of the Finance and Corporate Relations Statutes Amendment Act, 1998, S.B.C. 1998, c. 7, as that section 18 (b) was amended by section 19 of the Miscellaneous Statutes Amendment Act (No. 3), 1999, S.B.C. 1999, c. 39, is amended by striking out "16,".
78 The Motor Dealer Act, R.S.B.C. 1996, c. 316, is amended by adding the following section:
8.1	(1)	In this section, "director" has the same meaning as in the Consumer Protection Act.
(c)	apply, in whole or in part, one or more provisions of this Act, the Cost of Consumer Credit Disclosure Act and Part 6 of the Consumer Protection Act to any exercise by the registrar or the director of a right or power that the registrar or the director, respectively, would not, without the regulation referred to in paragraph (b) of this subsection, otherwise be entitled to exercise.
(a)	the registrar and the director each have and may exercise, in relation to the prescribed provisions of the Cost of Consumer Credit Disclosure Act, the rights and powers, if any, respectively prescribed for them under subsection (3) of this section,
(b)	contravention of a prescribed provision of the Cost of Consumer Credit Disclosure Act by a person is grounds for the registrar or the director, as the case may be, to determine that it is not in the public interest for the person to be registered or continue to be registered under this Act and, without limiting paragraph (a) of this subsection, the rights and powers of the registrar under Part 1 of this Act that may be exercised in the event of that determination are available to be exercised by the registrar or the director, as the case may be, and
(c)	Part 6 of the Cost of Consumer Credit Disclosure Act applies in respect of the contravention.
79	This Act comes into force by regulation of the Lieutenant Governor in Council.
This Bill represents the British Columbia contribution to the consumer credit disclosure project currently underway across the country. The Bill establishes disclosure requirements applicable to credit arrangements and related advertisements, including credit arrangements relating to credit sales, credit cards and leases of goods, and provides for a range of enforcement mechanisms to support the new statutory requirement.