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Bank Act (S.C. 1991, c. 46)

Full Document:  

Act current to 2022-11-16 and last amended on 2022-06-30. Previous Versions

PART XII.2Dealings with Customers and the Public (continued)

DIVISION 3Disclosure and Transparency for Informed Decisions (continued)

Key Product Information (continued)

Marginal note:Renewal or rollover

  •  (1) If an institution enters into an agreement with a natural person other than for business purposes in respect of a product or service in Canada — other than a loan that is secured by a mortgage on real property — and the agreement provides that a product or service may be renewed or that, after the end of the term of the product or service, a new product or service may be provided to the person without a further agreement being entered into, the institution shall disclose to the person the information set out in subsection (2),

    • (a) in the case of a product or service that is provided for a term of more than 30 days, 21 days before, and five days before, the last day of the term; and

    • (b) in the case of a product or service that is provided for a term of 30 days or less, five days before the last day of the term.

  • Marginal note:Content

    (2) The information to be disclosed is the following:

    • (a) the interest rate that will be applicable to the product or service on its renewal, or to the new product or service;

    • (b) any charges or penalties that may be imposed on the person in relation to the product or service on its renewal, or to the new product or service;

    • (c) particulars of the person’s rights and obligations in relation to the product or service on its renewal, or to the new product or service;

    • (d) the period within which the institution shall allow the person to cancel the agreement in respect of the product or service that may be renewed, or in respect of the new product or service; and

    • (e) any prescribed information.

Marginal note:Promotional and other offers

  •  (1) If a natural person accepts, other than for business purposes, a promotional, preferential, introductory or special offer with respect to a product or service other than an optional product or service, the institution shall disclose to the person the information set out in subsection (2),

    • (a) if the period during which the person will benefit from the offer is more than 30 days, 21 days before, and five days before, the last day of the period; and

    • (b) if the period during which the person will benefit from the offer is 30 days or less, five days before the last day of the period.

  • Marginal note:Content

    (2) The information to be disclosed is the following:

    • (a) the interest rate that will be applicable to the product or service after the day on which the person will no longer benefit from the offer;

    • (b) any charges or penalties that may be imposed on the person in relation to the product or service after the day on which the person will no longer benefit from the offer;

    • (c) particulars of the person’s rights and obligations in relation to the product or service after the day on which the person will no longer benefit from the offer;

    • (d) the period within which the institution shall allow the person to cancel the agreement in respect of the product or service after the day on which the person will no longer benefit from the offer; and

    • (e) any prescribed information.

Marginal note:Prescribed amendments to agreements

 An institution shall, before any prescribed amendment that it makes to a term or condition of an agreement with a person in respect of a product or service in Canada takes effect, disclose prescribed information to the person or any other person as directed by that person.

Marginal note:Advertisements

 If an institution is required under this Division to disclose information in an advertisement, it shall do so by presenting it prominently — as specified in any regulations — within the advertisement.

Marginal note:Prohibited conduct

 An institution shall disclose to its customers and to the public the fact that it shall not, under section 627.04,

  • (a) impose undue pressure on a person, or coerce a person, for any purpose, including to obtain a product or service from a particular person, as a condition for obtaining another product or service from the institution; or

  • (b) take advantage of a person.

Marginal note:Complaints procedures

 An institution shall disclose to its customers and to the public

  • (a) its procedures for dealing with complaints established under paragraph 627.43(1)(a);

  • (b) the name of the external complaints body of which it is a member and the manner in which that body may be contacted; and

  • (c) the Agency’s mailing address, website address and telephone number.

Marginal note:Voluntary codes of conduct and public commitments

 An institution shall disclose the voluntary codes of conduct that it has adopted, that are designed to protect the interests of its customers and that are publicly available — and the public commitments that it has made and that are designed to protect the interests of its customers — by

  • (a) making the voluntary codes and commitments available

    • (i) at each of its branches in Canada where it offers products or services and at each of its points of service, and

    • (ii) on each of its websites through which it offers products or services in Canada; and

  • (b) providing the voluntary codes and commitments in writing to any person who requests them.

Deposit Accounts, Financial Instruments and Notes
Deposit Accounts

Marginal note:Member banks — customers and the public

 A member bank shall disclose to its customers and to the public

  • (a) the conditions to be met for the opening of a retail deposit account by a natural person under subsections 627.17(1) and (3);

  • (b) the personal identification requirements set out in paragraph 627.25(1)(b); and

  • (c) any prescribed information.

Marginal note:Institutions — customers and the public

 An institution shall disclose to its customers and to the public

  • (a) a list of all charges applicable to personal deposit accounts in Canada with the institution and the usual amount, if any, charged by the institution for services normally provided in Canada to its customers and to the public;

  • (b) for a deposit account in Canada other than a personal deposit account,

    • (i) a list of all charges applicable to any prescribed services that it provides in respect of the account and the fact that the list sets out all such charges, or

    • (ii) a partial list of those charges and the manner in which information regarding charges not included in the list can be obtained;

  • (c) the maximum periods during which the institution may hold funds deposited by cheque or other instrument before making them available for withdrawal, as set out in section 627.21; and

  • (d) the institution’s policies concerning the maximum period during which the institution may hold funds deposited by cheque or other instrument in any situation to which section 627.21 does not apply.

Marginal note:Opening of deposit account

  •  (1) An institution shall, before entering into an agreement with a person for the opening of a deposit account in Canada, disclose to the person

    • (a) subject to subsection (2), a list of all charges applicable to the account;

    • (b) in the case of a personal deposit account, the circumstances in which the institution shall send the person an alert, in accordance with section 627.13;

    • (c) in the case of a retail deposit account,

      • (i) the rate of interest and the manner in which the amount of interest is calculated,

      • (ii) the maximum periods during which the institution may hold funds deposited by cheque or other instrument before making them available for withdrawal, as set out in section 627.21, and

      • (iii) the institution’s policies concerning the maximum period during which the institution may hold funds deposited by cheque or other instrument in any situation to which section 627.21 does not apply; and

    • (d) any prescribed information.

  • Marginal note:If amount of charge cannot be determined

    (2) If the amount of a charge referred to in paragraph (1)(a) cannot be determined before an agreement is entered into for the opening of a deposit account other than a personal deposit account, the institution shall, without delay after the amount is determined, disclose that amount to the person in whose name the account is kept.

Marginal note:Changes to holding periods

  •  (1) An institution shall disclose any changes to the information referred to in paragraph 627.68(c) or (d) to its customers and to the public for a period of at least 60 days ending on the effective date of the change, and disclose any changes to the information referred to in subparagraph 627.69(1)(c)(ii) or (iii) to each person in whose name the retail deposit account is kept and to whom a statement of account is provided — or to any other person as directed by that person — at least 30 days before the effective date of the change.

  • Marginal note:Shortened holding period

    (2) If the change results in a shortened period during which an institution may hold funds deposited by cheque or other instrument, the institution may meet the obligations set out in subsection (1) after the effective date of the change.

Marginal note:Change in rate of interest or manner of calculation

 If there is a change in the rate of interest that is applicable to a deposit account in Canada or in the manner in which the amount of interest for such an account is calculated, an institution shall, without delay, disclose the change

  • (a) to the person in whose name the account is kept or to any other person as directed by that person; or

  • (b) to the public by displaying it prominently

    • (i) at each of its branches in Canada where it offers deposit accounts and at each of its points of service, and

    • (ii) on each of its websites through which it offers deposit accounts in Canada.

Marginal note:Increase or new charge

  •  (1) An institution shall disclose to a person to whom a statement of account is provided — or to any other person as directed by that person — any increase to a charge applicable to a personal deposit account in Canada — or applicable to a prescribed service in relation to deposit accounts in Canada, other than personal deposit accounts — or any new charge applicable to a personal deposit account in Canada at least 30 days before the effective date of the increase or new charge.

  • Marginal note:Statement of account not provided

    (2) If there is a person in whose name the account is kept to whom a statement of account is not provided, an institution shall disclose to its customers and to the public any increase referred to in subsection (1) for a period of at least 60 days ending on the effective date of the increase or new charge, and if the increase or new charge is applicable to a personal deposit account, by displaying the increase or new charge prominently at each automated teller machine on which the name of the institution or information identifying the machine with the institution is displayed.

  • Marginal note:Manner of obtaining further information

    (3) An institution shall, to meet its obligations under subsection (2), also disclose the manner in which further details with respect to the increase or new charge can be obtained.

Deposit Insurance

Marginal note:Authorized foreign banks — customers and the public

 An authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2) and a bank referred to in paragraph 413(1)(b) or (c) shall disclose to their customers and to the public that deposits with them are not insured by the Canada Deposit Insurance Corporation.

Marginal note:Authorized foreign banks — customers and the public

 An authorized foreign bank that is subject to this section under an order referred to in subsection 524(2) shall disclose to its customers and to the public that it does not accept deposits in Canada and that it is not a member institution of the Canada Deposit Insurance Corporation.

Marginal note:Authorized foreign banks — deposit accounts and agreements for prescribed products

 An authorized foreign bank that is not subject to the restrictions and requirements referred to in subsection 524(2) shall, before entering into an agreement with a person for the opening of a deposit account in Canada or in respect of a prescribed product that relates to a deposit,

  • (a) disclose to the person the fact that deposits to the deposit account or in relation to the prescribed product, as the case may be, are not insured by the Canada Deposit Insurance Corporation, as well as any prescribed information; and

  • (b) obtain the person’s signature immediately next to the disclosure statement.

Marginal note:Certain banks — deposit accounts and agreements for prescribed products

  •  (1) A bank referred to in paragraph 413(1)(b) or (c) shall, before entering into an agreement with a person for the opening of a deposit account in Canada or in respect of a prescribed product that relates to a deposit, disclose to the person the fact that deposits to the deposit account or in relation to the prescribed product are not insured by the Canada Deposit Insurance Corporation.

  • Marginal note:Shared premises

    (2) A bank referred to in paragraph 413(1)(b) or (c) that shares premises with a member institution as defined in section 2 of the Canada Deposit Insurance Corporation Act shall, before entering into an agreement with a person for the opening of a deposit account in Canada or in respect of a prescribed product that relates to a deposit,

    • (a) disclose to the person

      • (i) the fact that the bank’s business is separate and distinct from that of the member institution, and

      • (ii) the fact that deposits to the deposit account or in relation to the prescribed product are not insured by the Canada Deposit Insurance Corporation;

    • (b) orally explain to the person the information that is to be disclosed under paragraph (a); and

    • (c) obtain from the person a signed declaration stating that

      • (i) the person has been given all of the information that is to be disclosed under paragraph (a) and has read it,

      • (ii) the bank has orally explained all the information that is to be disclosed under paragraph (a), and

      • (iii) the person understands all of the information that is to be disclosed under paragraph (a).

 
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