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Bank Act (S.C. 1991, c. 46)

Full Document:  

Act current to 2019-06-20 and last amended on 2019-06-17. Previous Versions

PART VIIIBusiness and Powers (continued)

General Business (continued)

Borrowing Costs (continued)

Marginal note:Renewal statement

 If a bank makes a loan in respect of which the disclosure requirements of section 450 apply and the loan is secured by a mortgage on real property, the bank shall disclose to the borrower, at the prescribed time and place and in the prescribed form and manner, any information that is prescribed respecting the renewal of the loan.

  • 1997, c. 15, s. 51
  • 2012, c. 5, s. 43

Marginal note:Disclosure in advertising

 No person shall authorize the publication, issue or appearance of any advertisement in Canada relating to arrangements referred to in subsection 452(3), loans, credit cards, payment cards or charge cards, offered to natural persons by a bank, and purporting to disclose prescribed information about the cost of borrowing or about any other matter unless the advertisement discloses prescribed information at the prescribed time and place and in the prescribed form and manner.

  • 1991, c. 46, s. 453
  • 1997, c. 15, s. 51
  • 2012, c. 5, s. 43

Marginal note:Regulations re borrowing costs

 The Governor in Council may make regulations

  • (a) respecting the time and place at which, and the form and manner in which, a bank is to disclose to a borrower

    • (i) the cost of borrowing,

    • (ii) any rebate of the cost of borrowing, and

    • (iii) any other information relating to a loan, arrangement, credit card, payment card or charge card referred to in section 452;

  • (b) respecting the contents of any statement disclosing the cost of borrowing and other information required to be disclosed by a bank to a borrower;

  • (c) respecting the manner of calculating the cost of borrowing;

  • (d) respecting the circumstances under which the cost of borrowing is to be expressed as an amount in dollars and cents;

  • (e) specifying any class of loans that are not to be subject to section 449.1 or subsection 450(1) or 452(1) or (3) or section 452.1 or 453 or the regulations or any specified provisions of the regulations;

  • (f) respecting the time and place at which, and the form and manner in which, any rights, obligations, charges or penalties referred to in sections 449.1 to 453 are to be disclosed;

  • (g) prohibiting the imposition of any charge or penalty referred to in section 452 or providing that the charge or penalty, if imposed, will not exceed a prescribed amount;

  • (h) respecting the nature or amount of any charge or penalty referred to in paragraph 452(1)(b), (2)(a) or (3)(a) and the costs of the bank that may be included or excluded in the determination of the charge or penalty;

  • (i) respecting the method of calculating the amount of rebate of the cost of borrowing, or the portion of the cost of borrowing referred to in subparagraph 452(1)(a)(ii);

  • (j) respecting advertisements made by a bank regarding arrangements referred to in subsection 452(3), loans, credit cards, payment cards or charge cards;

  • (k) respecting the renewal of loans; and

  • (l) respecting such other matters or things as are necessary to carry out the purposes of sections 449.1 to 453.

  • 1991, c. 46, s. 454
  • 1997, c. 15, s. 51
  • 2012, c. 5, s. 44

Complaints

Marginal note:Procedures for dealing with complaints

  •  (1) A bank shall

    • (a) establish procedures for dealing with complaints made by persons having requested or received products or services in Canada from a bank;

    • (b) designate an officer or employee of the bank to be responsible for implementing those procedures; and

    • (c) designate one or more officers or employees of the bank to receive and deal with those complaints.

  • Marginal note:Procedures to be filed with Commissioner

    (2) A bank shall file with the Commissioner a copy of its procedures established under paragraph (1)(a).

  • Marginal note:How procedures to be made available

    (3) A bank shall make its procedures established under paragraph (1)(a) available

    • (a) in the form of a brochure, at its branches where products or services are offered in Canada;

    • (b) on its websites through which products or services are offered in Canada; and

    • (c) in written format to be sent to any person who requests them.

  • Marginal note:Information on contacting Agency

    (4) A bank shall also make prescribed information on how to contact the Agency available whenever it makes its procedures established under paragraph (1)(a) available under subsection (3).

  • 1991, c. 46, s. 455
  • 1997, c. 15, s. 52
  • 2001, c. 9, s. 120
  • 2007, c. 6, s. 32

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
 
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