Bank Act (S.C. 1991, c. 46)

Marginal note:Credit or refund of charge or penalty

• 627.997 (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.