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Bank Act (S.C. 1991, c. 46)

Full Document:  

Act current to 2019-08-15 and last amended on 2019-06-21. Previous Versions

PART XII.1Authorized Foreign Banks (continued)

Borrowing Costs (continued)

Marginal note:Disclosure in advertising

 No person shall authorize the publication, issue or appearance of any advertisement in Canada relating to arrangements referred to in subsection 570(3), loans, credit cards, payment cards or charge cards, offered to natural persons by an authorized foreign bank, and purporting to disclose prescribed information about the cost of borrowing or about any other matter unless the advertisement discloses prescribed information at the prescribed time and place and in the prescribed form and manner.

  • 1991, c. 46, s. 571
  • 1999, c. 28, s. 35
  • 2012, c. 5, s. 67

Marginal note:Regulations re borrowing costs

 The Governor in Council may make regulations

  • (a) respecting the time and place at which, and the form and manner in which, an authorized foreign bank shall disclose to a borrower

    • (i) the cost of borrowing,

    • (ii) any rebate of the cost of borrowing, and

    • (iii) any other information relating to a loan, arrangement, credit card, payment card or charge card referred to in section 570;

  • (b) respecting the contents of any statement disclosing the cost of borrowing and other information required to be disclosed by an authorized foreign bank to a borrower;

  • (c) respecting the manner of calculating the cost of borrowing;

  • (d) respecting the circumstances under which the cost of borrowing is to be expressed as an amount in dollars and cents;

  • (e) specifying any class of loans that are not to be subject to section 567.1, subsection 568(1) or 570(1) or (3) or section 570.1 or 571 or the regulations or any specified provisions of the regulations;

  • (f) respecting the time and place at which, and the form and manner in which, any rights, obligations, charges or penalties referred to in sections 567.1 to 571 are to be disclosed;

  • (g) prohibiting the imposition of any charge or penalty referred to in section 570 or providing that the charge or penalty, if imposed, will not exceed a prescribed amount;

  • (h) respecting the nature or amount of any charge or penalty referred to in paragraph 570(1)(b), (2)(a) or (3)(a) and the costs of the authorized foreign bank that may be included or excluded in the determination of the charge or penalty;

  • (i) respecting the method of calculating the amount of rebate of the cost of borrowing, or the portion of the cost of borrowing referred to in subparagraph 570(1)(a)(ii);

  • (j) respecting advertisements made by an authorized foreign bank regarding arrangements referred to in subsection 570(3), loans, credit cards, payment cards or charge cards;

  • (k) respecting the renewal of loans; and

  • (l) respecting any other matters or things that are necessary to carry out the purposes of sections 567.1 to 571.

  • 1991, c. 46, s. 572
  • 1999, c. 28, s. 35
  • 2012, c. 5, s. 68

Complaints

Marginal note:Procedures for dealing with complaints

  •  (1) An authorized foreign bank shall

    • (a) establish procedures for dealing with complaints made by persons having requested or received products or services from the authorized foreign bank;

    • (b) designate one of its officers or employees in Canada to be responsible for implementing those procedures; and

    • (c) designate one or more of its officers or employees in Canada to receive and deal with those complaints.

  • Marginal note:Procedures to be filed with Commissioner

    (2) An authorized foreign bank shall file with the Commissioner a copy of its procedures established under paragraph (1)(a).

  • Marginal note:How procedures to be made available

    (3) An authorized foreign bank shall make its procedures established under paragraph (1)(a) available

    • (a) in the form of a brochure, at its branches where products or services are offered in Canada;

    • (b) on its websites through which products or services are offered in Canada; and

    • (c) in written format to be sent to any person who requests them.

  • Marginal note:Information on contacting Agency

    (4) An authorized foreign bank shall also make prescribed information on how to contact the Agency available whenever it makes its procedures established under paragraph (1)(a) available under subsection (3).

  • 1991, c. 46, s. 573
  • 1999, c. 28, s. 35
  • 2001, c. 9, s. 155
  • 2007, c. 6, s. 90

Marginal note:Obligation to be member

 An authorized foreign bank must be a member of one external complaints body.

  • 2001, c. 9, s. 156
  • 2010, c. 25, s. 150

Marginal note:Information on contacting Agency

  •  (1) An authorized foreign bank shall, in accordance with the regulations, at the prescribed time and place and in the prescribed form and manner, provide a person requesting or receiving a product or service from it with prescribed information on how to contact the Agency if the person has a complaint about an arrangement referred to in subsection 570(3), a payment, credit or charge card, the disclosure of or manner of calculating the cost of borrowing in respect of a loan, or about any other obligation of the authorized foreign bank under a consumer provision.

  • Marginal note:Report

    (2) The Commissioner shall prepare a report, to be included in the report referred to in section 34 of the Financial Consumer Agency of Canada Act, respecting

    • (a) procedures for dealing with complaints established by authorized foreign banks pursuant to paragraph 573(1)(a); and

    • (b) the number and nature of complaints that have been brought to the attention of the Agency by persons who have requested or received a product or service from an authorized foreign bank.

  • 1991, c. 46, s. 574
  • 1999, c. 28, s. 35
  • 2001, c. 9, s. 157
  • 2012, c. 5, s. 69

Miscellaneous

Marginal note:Charges for prescribed products or services

 An authorized foreign bank shall not, directly or indirectly, charge or receive any sum for the provision of any prescribed products or services unless the charge is made by express agreement between it and a customer or by order of a court.

  • 2007, c. 6, s. 91

Marginal note:Prepayment protected

  •  (1) An authorized foreign bank shall not make a loan to a natural person that is repayable in Canada, the terms of which prohibit prepayment of the money advanced or any instalment on the money advanced before its due date.

  • Marginal note:Minimum balance

    (2) Except by express agreement between the authorized foreign bank and the borrower, the making in Canada of a loan or advance by an authorized foreign bank to a borrower shall not be subject to a condition that the borrower maintain a minimum credit balance with the authorized foreign bank.

  • Marginal note:Non-application of subsection (1)

    (3) Subsection (1) does not apply in respect of a loan

    • (a) that is secured by a mortgage on real property; or

    • (b) that is made for business purposes and the principal amount of which is more than $100,000 or any other amount that may be prescribed.

  • Marginal note:Government cheques

    (4) An authorized foreign bank shall not make a charge

    • (a) for cashing a cheque or other instrument drawn on the Receiver General or on the Receiver General’s account in the Bank of Canada, or in any bank or other deposit-taking Canadian financial institution incorporated by or under an Act of Parliament or in any authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2), in respect of its business in Canada;

    • (b) for cashing any other instrument issued as authority for the payment of money out of the Consolidated Revenue Fund; or

    • (c) in respect of any cheque or other instrument that is

      • (i) drawn in favour of the Receiver General, the Government of Canada or any department of the Government of Canada or any public officer acting in the capacity of a public officer, and

      • (ii) tendered for deposit to the credit of the Receiver General.

  • Marginal note:Deposits of Government of Canada

    (5) Nothing in subsection (4) precludes any arrangement between the Government of Canada and an authorized foreign bank concerning

    • (a) compensation for services performed by the authorized foreign bank for the Government of Canada; or

    • (b) interest to be paid on any or all deposits of the Government of Canada with the authorized foreign bank.

  • 1991, c. 46, s. 575
  • 1999, c. 28, s. 35
  • 2001, c. 34, s. 6(F)
 
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