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Bank Act (S.C. 1991, c. 46)

Full Document:  

Act current to 2022-06-20 and last amended on 2022-02-26. Previous Versions

PART VIIIBusiness and Powers (continued)

General Business (continued)

Complaints (continued)

Marginal note:Approval of external complaints body

  •  (1) Subject to section 455.1, the Minister may, on the Commissioner’s recommendation and for the purposes of this section, approve a body corporate incorporated under the Canada Not-for-profit Corporations Act or under the Canada Business Corporations Act whose purpose, in the Minister’s view, under its letters patent is dealing with complaints, made by persons having requested or received products or services from its member financial institutions, that have not been resolved to the satisfaction of those persons under procedures established by those financial institutions under paragraph 455(1)(a).

  • Marginal note:Obligation to be member

    (2) A bank must be a member of one body corporate that is approved under subsection (1).

  • Marginal note:Regulations

    (3) The Governor in Council may make regulations respecting the requirements for the approval of a body corporate under subsection (1) and the requirements for a body corporate approved under that subsection for maintaining that approval.

  • Marginal note:Not an agent

    (4) A body corporate approved under subsection (1) is not an agent of Her Majesty.

  • Marginal note:Approval to be published

    (5) An approval given under subsection (1) must be published in the Canada Gazette.

  • Marginal note:Information, etc.

    (6) A body corporate that is seeking an approval under subsection (1) must apply to the Commissioner, and the application must provide, in the form and manner required by the Commissioner, any information, material and evidence that he or she may require.

  • 2010, c. 25, ss. 147, 163

Marginal note:Designation of complaints body

  •  (1) The Minister may, for the purposes of this section, designate a body corporate incorporated under the Canada Not-for-profit Corporations Act whose purpose, in the view of the Minister, is dealing with complaints, made by persons having requested or received products or services from its member financial institutions, that have not been resolved to the satisfaction of those persons under procedures established by those financial institutions under paragraph 455(1)(a).

  • Marginal note:Effect of designation

    (1.1) If the Minister makes a designation under subsection (1), any approval given under subsection 455.01(1) is revoked.

  • Marginal note:Effect of revocation

    (1.2) If the Minister makes a designation under subsection (1), the body corporate designated under that subsection must deal with any complaint that was made to a body corporate approved under subsection 455.01(1) and that has not been resolved.

  • Marginal note:Obligation to be member

    (2) A bank shall be a member of any body corporate that is designated under subsection (1).

  • Marginal note:Directors

    (3) The Minister may, in accordance with the letters patent and by-laws of the body corporate designated under subsection (1), appoint the majority of its directors.

  • Marginal note:Regulations

    (3.1) The Governor in Council may make regulations respecting the requirements to be met by the body corporate designated under subsection (1).

  • Marginal note:Not an agent

    (4) A body corporate designated under subsection (1) is not an agent of Her Majesty.

  • Marginal note:Designation to be published

    (5) A designation under subsection (1) shall be published in the Canada Gazette.

  • 2001, c. 9, s. 121
  • 2009, c. 23, s. 306
  • 2010, c. 25, s. 148

Marginal note:Information on contacting Agency

  •  (1) A 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 a deposit account, an arrangement referred to in subsection 452(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 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 banks pursuant to paragraph 455(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 a bank.

  • 1991, c. 46, s. 456
  • 1997, c. 15, s. 53
  • 2001, c. 9, s. 122
  • 2012, c. 5, s. 45

Miscellaneous

Marginal note:Charges for prescribed products or services

 A 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.

  • 1991, c. 46, s. 457
  • 1999, c. 31, s. 14
  • 2007, c. 6, s. 33

Marginal note:Prepayment protected

  •  (1) A 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 thereon before its due date.

  • Marginal note:Minimum balance

    (2) Except by express agreement between the bank and the borrower, the making in Canada of a loan or advance by a bank to a borrower shall not be subject to a condition that the borrower maintain a minimum credit balance with the 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 such other amount as may be prescribed.

  • Marginal note:Government cheques

    (4) A 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, 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 thereof 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 a bank concerning

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

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

  • 1991, c. 46, s. 458
  • 1997, c. 15, s. 54
  • 1999, c. 28, s. 24

Marginal note:Cashing of government cheques

  •  (1) Subject to regulations made under subsection (2), a member bank shall, at any branch in Canada at which it, through a natural person, opens retail deposit accounts and disburses cash to customers, cash a cheque or other instrument for any individual, if

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

    • (b) the individual makes the request to cash it in person and meets the prescribed conditions; and

    • (c) the amount of the cheque or other instrument is not more than the prescribed amount.

  • Marginal note:Regulations

    (2) The Governor in Council may make regulations

    • (a) respecting circumstances in which subsection (1) does not apply;

    • (b) for the purposes of subsection (1), prescribing the maximum amount of a cheque or other instrument; and

    • (c) prescribing conditions to be met by an individual referred to in subsection (1).

    • (d) [Repealed, 2012, c. 5, s. 46]

  • 2001, c. 9, s. 123
  • 2012, c. 5, s. 46

Marginal note:Regulations respecting the holding of funds

 The Governor in Council may make regulations respecting the maximum period during which a bank may hold funds in respect of specified classes of cheques or other instruments that are deposited into an account at a branch or prescribed point of service in Canada before permitting the customer in whose name the account is kept to access the funds.

  • 2007, c. 6, s. 34

Marginal note:Regulations — activities

 The Governor in Council may make regulations respecting any matters involving a bank’s dealings, or its employees’, representatives’, agents’ or other intermediaries’ dealings, with customers or the public, including

  • (a) what a bank may or may not do in carrying out any of the activities in which it is permitted to engage, or in providing any of the services that it may provide, under section 409 and any ancillary, related or incidental activities or services; and

  • (b) the time and place at which and the form and manner in which any of those activities are to be carried out or any of those services are to be provided.

  • 2009, c. 2, s. 271
  • 2012, c. 5, s. 47

Marginal note:Regulations re customer information

 The Governor in Council may make regulations

  • (a) requiring a bank to establish procedures regarding the collection, retention, use and disclosure of any information about its customers or any class of customers;

  • (b) requiring a bank to establish procedures for dealing with complaints made by a customer about the collection, retention, use or disclosure of information about the customer;

  • (c) respecting the disclosure by a bank of information relating to the procedures referred to in paragraphs (a) and (b);

  • (d) requiring a bank to designate the officers and employees of the bank who are responsible for

    • (i) implementing the procedures referred to in paragraph (b), and

    • (ii) receiving and dealing with complaints made by a customer of the bank about the collection, retention, use or disclosure of information about the customer;

  • (e) requiring a bank to report information relating to

    • (i) complaints made by customers of the bank about the collection, retention, use or disclosure of information, and

    • (ii) the actions taken by the bank to deal with the complaints; and

  • (f) defining information, collection and retention for the purposes of paragraphs (a) to (e) and the regulations made under those paragraphs.

  • 1991, c. 46, s. 459
  • 1997, c. 15, s. 55

Marginal note:Restriction on tied selling

  •  (1) A bank shall not impose undue pressure on, or coerce, a person to obtain a product or service from a particular person, including the bank and any of its affiliates, as a condition for obtaining another product or service from the bank.

  • Marginal note:Favourable bank product or service tied to other sale

    (2) For greater certainty, a bank may offer a product or service to a person on more favourable terms or conditions than the bank would otherwise offer, where the more favourable terms and conditions are offered on the condition that the person obtain another product or service from any particular person.

  • Marginal note:Favourable other sale tied to bank product or service

    (3) For greater certainty, an affiliate of a bank may offer a product or service to a person on more favourable terms or conditions than the affiliate would otherwise offer, where the more favourable terms and conditions are offered on the condition that the person obtain another product or service from the bank.

  • Marginal note:Bank approval

    (4) A bank may require that a product or service obtained by a borrower from a particular person as security for a loan from the bank meet with the bank’s approval. That approval shall not be unreasonably withheld.

  • Marginal note:Disclosure

    (4.1) A bank shall, in accordance with the regulations, disclose the prohibition on coercive tied selling set out in subsection (1) in a statement in plain language that is clear and concise, displayed and available to customers and the public at all of its branches where products or services are offered in Canada, on all of its websites through which products or services are offered in Canada and at all prescribed points of service in Canada.

  • Marginal note:Regulations

    (4.2) The Governor in Council may make regulations for the purposes of subsection (4.1)

    • (a) respecting the time and place at which, and the form and manner in which, the prohibition on coercive tied selling set out in subsection (1) is to be disclosed, displayed and made available;

    • (b) defining point of service; and

    • (c) prescribing points of service.

  • Marginal note:Regulations

    (5) The Governor in Council may make regulations

    • (a) specifying types of conduct or transactions that shall be considered undue pressure or coercion for the purpose of subsection (1); and

    • (b) specifying types of conduct or transactions that shall be considered not to be undue pressure or coercion for the purpose of subsection (1).

  • 1997, c. 15, s. 55
  • 1999, c. 28, s. 24.1(F)
  • 2001, c. 9, s. 124
  • 2007, c. 6, s. 35
  • 2012, c. 5, s. 48

Marginal note:Notice of branch closure

  •  (1) Subject to regulations made under subsection (5), a member bank with a branch in Canada at which it, through a natural person, opens retail deposit accounts and disburses cash to customers, shall give notice in accordance with those regulations before closing that branch or having it cease to carry on either of those activities.

  • Marginal note:Pre-closure meeting

    (2) After notice is given but before the branch is closed or ceases to carry on the activities, the Commissioner shall, in prescribed situations, require the bank to convene and hold a meeting between representatives of the bank, representatives of the Agency and interested parties in the vicinity of the branch in order to exchange views about the closing or cessation of activities, including, but not limited to, alternative service delivery by the bank and measures to help the branch’s customers adjust to the closing or cessation of activities.

  • Marginal note:Meeting details

    (3) The Commissioner may establish rules for convening a meeting referred to in subsection (2) and for its conduct.

  • Marginal note:Not statutory instruments

    (4) The Statutory Instruments Act does not apply in respect of rules established under subsection (3).

  • Marginal note:Regulations

    (5) The Governor in Council may make regulations prescribing

    • (a) the time and place at which and the form and manner in which notice shall be given under subsection (1), the persons to whom it shall be given and the information to be included, with those times, places, forms and manners being permitted to vary according to circumstances specified in the regulations;

    • (b) circumstances in which a member bank is not required to give notice under subsection (1), circumstances in which the Commissioner may exempt a member bank from the requirement to give notice under that subsection, and circumstances in which the Commissioner may vary the time and place at which and the form and manner in which notice is required to be given under any regulation made under paragraph (a); and

    • (c) circumstances in which a meeting may be convened under subsection (2).

  • 2001, c. 9, s. 125
  • 2007, c. 6, s. 36
  • 2012, c. 5, s. 49
 
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