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Bank Act (S.C. 1991, c. 46)

Full Document:  

Act current to 2022-11-28 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:Increase or new charge

 An institution shall not increase any charge or impose a new charge associated with a prepaid payment product that is issued to a natural person unless

  • (a) the person has provided the institution with their name and mailing or email address;

  • (b) the institution has given the person the opportunity to modify the information referred to in paragraph (a); and

  • (c) the institution discloses the new or increased charge by

    • (i) sending a notice to the most recent address provided for the person at least 30 days before the effective date of the new or increased charge, and

    • (ii) displaying a notice on the institution’s website for a period of at least 60 days ending on the effective date of the new or increased charge.

Optional Products or Services

Marginal note:Agreement — natural persons

  •  (1) An institution shall, before entering into an agreement with a natural person other than for business purposes for an optional product or service, disclose to the person the following information:

    • (a) a description of the optional product or service;

    • (b) the term of the agreement;

    • (c) a list of all charges that will be imposed for the use of the product or service, or the method used for determining the charges and an example to illustrate the method;

    • (d) the conditions under which the person may cancel the agreement;

    • (e) the date from which the product or service is available for use and, if different, from which charges apply; and

    • (f) the steps required to use the product or service.

  • Marginal note:Content — cancellation

    (2) Before entering into the agreement, the institution shall also disclose

    • (a) the fact that the person may cancel the agreement by notifying the institution that the agreement is to be cancelled;

    • (b) the fact that the cancellation will take effect on the last day of the billing cycle, or 30 days after the institution receives the notification, whichever is earlier; and

    • (c) the fact that it shall, without delay on receipt of the notification, refund or credit to the person any amount that it received for any part of the product or service that will be unused from the effective date of the cancellation, to be calculated in accordance with the prescribed formula.

Marginal note:Promotional and other offers

 The institution shall, immediately before obtaining a person’s express consent under section 627.42, disclose to the person the information set out in paragraphs 627.94(1)(b) to (e) and subsection 627.94(2) and,

  • (a) if consent is to be obtained under subsection 627.42(1), the day on which the person will no longer benefit from the offer; and

  • (b) if consent is to be obtained under subsection 627.42(2), the fact that the person no longer benefits from the offer.

Marginal note:Amendments

 If an institution makes an amendment to a term or condition of an agreement referred to in section 627.94 that results in a change to the information that was required to be disclosed under that section, the institution shall, at least 30 days before the day on which the amendment takes effect, disclose that change to the person.

Marginal note:Cancellation

 If an optional product or service, other than one provided in relation to a credit agreement, is provided on an ongoing basis by an institution, the institution shall, as part of any disclosure that it is required to make under section 627.95 or 627.96, disclose the information set out in paragraph 627.94(1)(d) and subsection 627.94(2).

Registered Products

Marginal note:Availability of list of charges

 An institution shall disclose a list of all charges applicable to registered products by

  • (a) making the list available

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

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

  • (b) providing the list to any person who requests it.

Marginal note:Agreement — persons

 An institution shall, before entering into an agreement with a person for a registered product in Canada, disclose to the person

  • (a) information about all charges applicable to the product;

  • (b) information about how the person will be notified of any increase in those charges and of any new charges applicable to the product; and

  • (c) any prescribed information.

Marginal note:Amendments

 An institution shall, before any amendment that it makes to a term or condition with respect to a registered product takes effect, disclose the amendment to the person to whom the product was issued.

Mortgage Insurance

Marginal note:Availability of information

  •  (1) If an institution or any of its affiliates imposes a charge for insurance or a guarantee that the institution obtains against default on a loan made in Canada on the security of residential property, the institution shall disclose prescribed information and any other information that could reasonably be expected to have an impact on a borrower by

    • (a) making the information available

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

      • (ii) on each of its websites through which it offers residential mortgages in Canada; and

    • (b) providing the information to any person who requests it.

  • Marginal note:Agreement — persons

    (2) An institution shall, before entering into an agreement under which such a charge is imposed on a person, disclose prescribed information to the person and any other information that could reasonably be expected to have an impact on the person.

Public Notices

Notice of Branch Closure

Marginal note:Written notice

  •  (1) A member bank that closes a retail deposit-taking branch — or that ceases to open retail deposit accounts or to disburse cash to customers through a natural person at a retail deposit-taking branch — shall

    • (a) give a written notice to the Commissioner not later than

      • (i) four months before the date proposed for the closure of the branch or the cessation of the activity, if the branch is in an urban area or in a rural area where there is another retail deposit-taking branch within a travelling distance of 10 km from the branch, or

      • (ii) six months before the date proposed for the closure of the branch or the cessation of the activity, if the branch is in a rural area where there is no other retail deposit-taking branch within a travelling distance of 10 km from the branch;

    • (b) give a written notice to each customer of the branch and to the public not later than four months before the date proposed for the closure of the branch or the cessation of the activity, if the branch is in an urban area or in a rural area where there is another retail deposit-taking branch within a travelling distance of 10 km from the branch; and

    • (c) give a written notice to each customer of the branch, to the public and to the chairperson, mayor, warden, reeve or other similar chief officer of the municipal or local government body or authority for the area in which the branch is located not later than six months before the date proposed for the closure of the branch or the cessation of the activity, if the branch is in a rural area where there is no other retail deposit-taking branch within a travelling distance of 10 km from the branch.

  • Marginal note:Notice to public

    (2) The member bank shall give the notice to the public by

    • (a) displaying it prominently at the branch; and

    • (b) if the notice is one that is required under paragraph (1)(c), publishing it in a newspaper in general circulation at or near the place where the branch is located.

  • Marginal note:Content of notice

    (3) The notice shall include prescribed information.

Marginal note:Exemptions

 In prescribed circumstances, the Commissioner may, on the request of a member bank, exempt it from the requirement to give a notice under section 627.993 or vary the time and manner in which such a notice is required to be given.

Marginal note:Meeting

  •  (1) After a notice is given but before the branch is closed or ceases to carry on the activity, the Commissioner shall require the member bank to convene and hold a meeting between representatives of the bank, representatives of the Agency and interested persons in the area affected by the closure of the branch or the cessation of the activity in order to exchange views about the closure of the branch or the cessation of the activity, including alternate service delivery by the bank and measures to help the branch’s customers adjust to the closure or the cessation of the activity, if

    • (a) the member bank has not consulted in the area well enough to ascertain the views of interested persons in the area with regard to the closure of the branch, the cessation of the activity, alternate service delivery by the bank or measures to help the branch’s customers adjust to the closure or the cessation of the activity; and

    • (b) an area representative or a person from the area submits to the Commissioner a request for the meeting and the request is not frivolous or vexatious.

  • Marginal note:Rules

    (2) The Commissioner may establish rules for the convening and conduct of a meeting.

  • Marginal note:Non-application of Statutory Instruments Act

    (3) The Statutory Instruments Act does not apply to rules established under subsection (2).

Public Accountability Statements

Marginal note:Content

  •  (1) A bank with equity of $1,000,000,000 or more shall, within 135 days after the end of each financial year,

    • (a) file a written statement with the Commissioner that includes, for that financial year,

      • (i) prescribed information with respect to the contribution of the bank and its prescribed affiliates to the Canadian economy and society and with respect to any other matter,

      • (ii) the names of 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 of any public commitments that it has made and that are designed to protect the interests of its customers — along with the means by which the codes and commitments are made available to its customers and the public,

      • (iii) a description of the measures taken by the bank and its prescribed affiliates to provide products and services to low-income persons, senior persons, persons with disabilities and persons who face accessibility, linguistic or literacy challenges, and

      • (iv) a description of the consultations undertaken by the bank and its prescribed affiliates with their customers and the public in relation to

        • (A) existing products and services, including the means by which they are provided,

        • (B) the development of new products and services, including the means by which they would be provided,

        • (C) the identification of trends and emerging issues that may have an impact on their customers or the public, and

        • (D) matters in respect of which the bank has received complaints; and

    • (b) inform its customers and the public, through advertising, making public announcements, posting notices, mailing information or otherwise, about the means by which the statement is made available to them.

  • Marginal note:Exception

    (2) A bank is not required to include in the statement the information required under subparagraphs (1)(a)(i), (iii) and (iv) with respect to a prescribed affiliate if a company referred to in subsection 489.1(1) of the Insurance Companies Act or subsection 444.2(1) of the Trust and Loan Companies Act has already published that information in its statement published under those subsections.

  • Marginal note:Availability of statement

    (3) The bank shall make the statement available free of charge

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

    • (b) by providing it to any person who requests it.

DIVISION 4Redress

Marginal note:Credit or refund of charge or penalty

  •  (1) An institution shall, if it has imposed a charge or penalty in relation to a product or service,

    • (a) credit the amount of the charge or penalty or, if it was collected, refund the amount if the charge or penalty was not provided for in an agreement; or

    • (b) credit the excess amount of the charge or penalty or, if it was collected, refund the excess amount if the charge or penalty was greater than the amount of charge or penalty that was provided for in an agreement.

  • Marginal note:Credit or refund of charge or penalty — no express consent

    (2) An institution shall, if it has provided a person with a product or service without first having obtained from the person the express consent referred to in paragraph 627.08(1)(a), and if it has imposed a charge or penalty on the person in relation to the product or service, credit the amount of the charge or penalty or, if it was collected, refund the amount.

  • Marginal note:Interest

    (3) The amount referred to in subsections (1) and (2) bears interest from the day on which it was imposed, at a rate equal to the Bank of Canada’s overnight rate on that day, until the day on which the amount is refunded or credited.

 
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