Bank Act (S.C. 1991, c. 46)

Marginal note:Policies and procedures — appropriate products or services

627.06 An institution shall establish and implement policies and procedures to ensure that the products or services in Canada that it offers or sells to a natural person other than for business purposes are appropriate for the person having regard to their circumstances, including their financial needs.

Marginal note:Remuneration, payment or benefit

627.07 An institution shall ensure that the remuneration of its officers and employees in Canada — and of any person who offers or sells its products or services in Canada — as well as any payment or benefit that the institution offers to them, does not interfere with the person’s ability to comply with the policies and procedures referred to in section 627.06.

Marginal note:No provision without express consent and agreement

• 627.08 (1) Subject to any regulations, an institution shall not provide a person with a product or service in Canada without first

  • (a) obtaining the person’s express consent to do so;

  • (b) entering into an agreement with the person for it to be provided; and

  • (c) providing the person with a copy of the agreement, if the agreement is for a product or service to be provided on an ongoing basis.

• Marginal note:Oral consent — written confirmation

  (2) If the consent is given orally, the institution shall provide the person with written confirmation of that consent without delay.

• Marginal note:Use not consent

  (3) Use by the person of the product or service does not constitute express consent for the purpose of subsection (1).

Marginal note:Obtaining express consent

627.09 Any communication from an institution seeking a person’s express consent shall be made in a manner, and using language, that is clear, simple and not misleading.

Marginal note:Cancellation periods — products or services

• 627.1 (1) Subject to subsection (1.1), if an institution enters into an agreement with a person in respect of a product or service in Canada — other than a prescribed product or service or a product or service referred to in section 627.11 — to be provided on an ongoing basis, the institution shall allow the person to cancel the agreement,

  • (a) if it was entered into by mail or orally by telephone, within the prescribed period or, if there is no prescribed period, until the end of the 14th business day after the day on which the agreement is entered into; or

  • (b) if it was entered into in any other manner, within the prescribed period or, if there is no prescribed period, until the end of the third business day after the day on which the agreement is entered into.

• Marginal note:Exception

  (1.1) Subsection (1) does not apply to a body corporate, trust or partnership if it is a business that is not an eligible enterprise.

• Marginal note:Obligations of institution

  (2) If a person notifies an institution that they are cancelling an agreement within the applicable period referred to in subsection (1), the institution shall

  • (a) in writing and without delay, acknowledge receipt of the person’s notice of cancellation and confirm what it intends to recover under subsection (3); and

  • (b) without delay, refund to the person any amount that it received in respect of the provision of the product or service.

• Marginal note:Limited recovery

  (3) In the event of a cancellation within the applicable period referred to in subsection (1), an institution shall waive any cancellation charge and may recover only

  • (a) any amounts related to the person’s use of the product or service prior to the cancellation;

  • (b) any expense that the institution has reasonably incurred in providing the product or service; and

  • (c) any prescribed amount.

Marginal note:Cancellation — certain products or services

• 627.11 (1) If an institution enters into an agreement with a person in respect of a retail deposit account, deposit-type instrument, credit card account or any prescribed product or service in Canada, the institution shall allow the person to cancel the agreement in accordance with any prescribed requirements.

• Marginal note:Obligation of institution

  (2) If the person cancels the agreement, the institution shall meet any prescribed requirements.

Marginal note:Imposition of charges or penalties

• 627.12 (1) An institution shall not impose on a person a charge or penalty in relation to a product or service in Canada unless

  • (a) the institution has obtained from the person the express consent referred to in paragraph 627.08(1)(a);

  • (b) the agreement in respect of the product or service provides for its imposition; and

  • (c) the institution discloses the charge or penalty in accordance with this Part.

• Marginal note:Court order

  (2) Subsection (1) does not preclude the institution from receiving an amount in relation to a product or service that is determined under an order of a court.

Marginal note:Alert

• 627.13 (1) An institution shall, without delay, send to a natural person an alert, by electronic means,

  • (a) if the balance of the person’s personal deposit account that is opened in Canada falls below any amount that the person communicates to the institution or, if the person does not communicate an amount, below the prescribed amount or, if there is no prescribed amount, $100; or

  • (b) if the amount of credit available on the person’s line of credit that is extended — or credit card account that is opened — in Canada other than for business purposes falls below any amount that the person communicates to the institution or, if the person does not communicate an amount, below the prescribed amount or, if there is no prescribed amount, $100.

• Marginal note:Exception

  (2) Subsection (1) does not apply if the person has opted out, in writing, of receiving the alert or does not provide the contact information required to receive the alert.

• Marginal note:Content

  (3) The alert shall indicate that the balance of the personal deposit account, or the amount of credit available on the line of credit or credit card account, has fallen below the amount communicated to the institution, below the prescribed amount or below $100, as the case may be, and that, in accordance with the agreement in respect of the product or service, charges or penalties may be imposed for the most recent transaction, or for any subsequent transaction, made on the account or line of credit. The alert shall also indicate what the person may do to avoid charges or penalties and the time within which it is to be done, and include any prescribed information.

Marginal note:Advertisements

627.14 Any advertisement in Canada that is made by an institution shall be accurate, clear and not misleading.

Marginal note:Arrangements with affiliates, etc.

627.15 An institution shall not enter into any arrangement or otherwise cooperate with any of its representatives, agents or other intermediaries, with any of its affiliates that are controlled by a bank or a bank holding company and that are a finance entity as defined in subsection 464(1) or other prescribed entity, or with any of the representatives, agents or other intermediaries of such an affiliate, to sell or further the sale of a product or service of the institution or the affiliate unless

• (a) the affiliate or the representative, agent or other intermediary of the institution or the affiliate, as the case may be, complies, with respect to the product or service, with the consumer provisions that apply to institutions, as if it were an institution, to the extent that those provisions are applicable to its activities;

• (b) the persons who request or receive the product or service have access to the institution’s procedures established for dealing with complaints under paragraph 627.43(1)(a) as if the product or service had been requested or received from the institution;

• (c) the employees of the affiliate or the representative, agent or other intermediary of the institution or the affiliate, as the case may be,

  • (i) may report particulars under subsection 979.2(1) to the affiliate or the representative, agent or other intermediary of the institution or the affiliate as if they were an employee of a bank, and

  • (ii) have access to the procedures established under section 979.3; and

• (d) the affiliate or the representative, agent or other intermediary of the institution or the affiliate, as the case may be, complies with section 979.4 as if it were a bank.

Marginal note:Intermediary for another entity

627.16 If an institution is acting in the capacity of a representative, agent or other intermediary for another entity in respect of a product or service provided by the entity, the institution shall ensure that an agreement in respect of that product or service complies with the prescribed requirements.

Access to Basic Banking Services

Retail Deposit Accounts

Marginal note:Opening

• 627.17 (1) Subject to subsection (2), a member bank shall, at any point of service or any branch in Canada at which it opens retail deposit accounts through natural persons, open a retail deposit account on the request, made there in person, of a natural person who

  • (a) presents to the member bank

    • (i) two documents from a reliable source — one of which indicates the person’s name and address and the other the person’s name and date of birth — including

      • (A) identification issued by the Government of Canada or the government of a province,

      • (B) recent notices of tax assessments issued by the Government of Canada or the government of a province or municipality,

      • (C) recent statements of benefits from the Government of Canada or the government of a province,

      • (D) recent Canadian public utility bills,

      • (E) recent bank account or credit card statements,

      • (F) foreign passports, and

      • (G) any prescribed document, or

    • (ii) any document from a reliable source that indicates the person’s name and date of birth, if the person’s identity is also confirmed by a customer in good standing with the member bank or by a natural person of good standing in the community where the point of service or branch is located;

  • (b) if the member bank so requests, consents to the member bank’s verifying whether any of the circumstances set out in paragraphs 627.18(1)(a) to (d) applies to the person, and to the member bank’s verifying the documents presented by the person;

  • (c) if the member bank — based on its verification of the circumstances set out in paragraphs 627.18(1)(a) to (d) or of the documents presented by the person or based on any information provided by the person in connection with the request — has reasonable grounds to suspect that the person is misrepresenting their identity, presents to the member bank one piece of identification issued by the Government of Canada or the government of a province that bears the person’s photograph and signature;

  • (d) if the member bank is a federal credit union and so requests, becomes a member of the bank; and

  • (e) meets any prescribed condition.

• Marginal note:Opening at another location

  (2) If a natural person who meets the conditions set out in subsection (1) requests the opening of a retail deposit account at a point of service at which the opening of such an account can only be initiated, the member bank is not required to open the account at that point of service; however, the bank shall open the account at another physical location.

• Marginal note:Request made in other manner

  (3) A member bank shall open a retail deposit account for any natural person who requests it in any prescribed manner and who meets any prescribed condition.

• Marginal note:No minimum deposit or balance required

  (4) A member bank shall not require the natural person to make an initial minimum deposit or maintain a minimum balance.

Marginal note:Non-application

• 627.18 (1) Subsections 627.17(1) to (3) do not apply

  • (a) if the member bank has reasonable grounds to believe that the retail deposit account will be used for illegal or fraudulent purposes;

  • (b) if the natural person has a history of illegal or fraudulent activity in relation to providers of financial services and the most recent instance of such an activity occurred less than seven years before the day on which the request to open a retail deposit account is made;

  • (c) if the member bank has reasonable grounds to believe that the natural person, for the purpose of opening the retail deposit account, knowingly made a material misrepresentation in the information provided to the member bank;

  • (d) if the member bank has reasonable grounds to believe that it is necessary to refuse to open the retail deposit account in order to protect the customers or employees of the member bank from physical harm, harassment or other abuse;

  • (e) if the request is made at a branch or point of service of a member bank at which the only retail deposit accounts offered are those that are linked to an account at another financial institution; or

  • (f) in any prescribed circumstances.

• Marginal note:Bankruptcy

  (2) For greater certainty and for the purpose of paragraph (1)(a), the fact that the natural person is or has been a bankrupt does not, by itself without any evidence of fraud or any other illegal activity in relation to the bankruptcy, constitute reasonable grounds for a member bank to believe that an account for the person will be used for illegal or fraudulent purposes.