Bank Act (S.C. 1991, c. 46)

Marginal note:Liability for unauthorized use

• 627.33 (1) The maximum liability of a borrower for the unauthorized use of a credit card issued to them in Canada, the account information of the credit card or the personal authentication information created or adopted in relation to the credit card or credit card account is $50, unless the borrower has demonstrated gross negligence or, in Quebec, gross fault, in safeguarding the credit card, the account information or the personal authentication information.

• Marginal note:Report of unauthorized use

  (2) If a borrower reports to an institution that a credit card issued to them in Canada, the account information of the credit card or the personal authentication information created or adopted in relation to the credit card or credit card account has been lost or stolen or is otherwise at risk of being used in an unauthorized manner, the borrower shall not be liable for any unauthorized use of the credit card, the account information or the personal authentication information after the report is received.

• Marginal note:Personal authentication information

  (3) The unauthorized use of a credit card issued to a borrower in Canada, or of account information of the credit card, by means of the personal authentication information created or adopted in relation to the credit card or credit card account does not by itself establish that the borrower demonstrated gross negligence or, in Quebec, gross fault, in safeguarding the personal authentication information.

Marginal note:Credit card statement

• 627.34 (1) Subject to any regulations, an institution shall, for a credit card issued in Canada to a natural person other than for business purposes, send a statement of account in respect of each billing cycle to the person. The statement is to be sent without delay after the last day of the billing cycle.

• Marginal note:Minimum payment — due date

  (2) An institution shall not require a minimum payment in respect of the outstanding balance owing for a particular billing cycle on the credit card account to be made by the person less than 21 days after the last day of that billing cycle.

• Marginal note:Non-business day

  (3) If the due date for a minimum payment in respect of the outstanding balance owing on the credit card account does not fall on a business day, the institution shall consider a payment made on the next business day as being made on time.

• Marginal note:No interest if balance paid in full

  (4) An institution shall not impose interest on purchases of goods or services made during a particular billing cycle on the credit card account if the person pays the outstanding balance owing on the credit card account in full on or before the due date.

Marginal note:Different interest rates — allocation of payment

• 627.35 (1) If different interest rates apply to different amounts owing for a particular billing cycle on a credit card account that is opened in Canada by a natural person other than for business purposes, the institution shall allocate any payment made by the person that is greater than the required minimum payment for that billing cycle among those amounts using one of the following methods:

  • (a) by allocating that payment first to the amount with the highest interest rate and then allocating any remaining portion of the payment to the other amounts in descending order, based on their applicable interest rates; or

  • (b) by allocating that payment among those amounts in the same proportion as each amount bears to the outstanding balance owing on the credit card account.

• Marginal note:Rounding and adjustments

  (2) For the purpose of paragraph (1)(b), if the payment that the institution allocates to an amount owing on a credit card account contains a fraction of a dollar, the institution may round up that amount to the nearest dollar if the fraction of the dollar is equal to or greater than 50 cents, round down that amount to the nearest dollar if the fraction is less than 50 cents and, if necessary, make corresponding adjustments to the other amounts that are being allocated.

Marginal note:No charge — holds

• 627.36 (1) An institution shall not impose a charge on a natural person for exceeding their credit limit as a result of a hold on a credit card that was issued in Canada to the person other than for business purposes.

• Marginal note:Non-application

  (2) Subsection (1) does not apply if the person would, in any case, have exceeded their credit limit during the period in which the hold was in effect.

Marginal note:Debt recovery

627.37 In its dealings with a natural person who owes it a debt under a credit agreement entered into other than for business purposes, an institution

• (a) shall not communicate or attempt to communicate with the person, any member of the person’s family or household, any relative, neighbour, friend or acquaintance of the person or the person’s employer by any means that constitutes harassment, in a manner that constitutes harassment or with a frequency that constitutes harassment, including by

  • (i) using threatening, profane, intimidating or coercive language,

  • (ii) using undue pressure, or

  • (iii) making public, or threatening to make public, the person’s failure to pay; and

• (b) shall comply with any other prescribed debt collection practices.

Prepaid Payment Products

Marginal note:No expiry unless promotional product

627.38 An institution shall not impose an expiry date on the right of a person with whom it entered into an agreement for the issuance of a prepaid payment product to use the funds that are loaded on the product unless it is a promotional product.

Marginal note:Maintenance charges

627.39 An institution shall not impose any maintenance charges in respect of a prepaid payment product for the period of 12 months after the day on which the product is activated unless it is

• (a) a promotional product; or

• (b) a reloadable product for which the institution has obtained the express consent of the person with whom it entered into an agreement for the issuance of the product to the imposition of the charge.

Marginal note:No overdraft charges without express consent

• 627.4 (1) An institution shall not impose any overdraft charges in respect of a prepaid payment product without first obtaining the express consent of the person with whom it entered into an agreement for the issuance of the product.

• Marginal note:Use not consent

  (2) Use by the person of the prepaid payment product does not constitute express consent for the purpose of subsection (1).

Optional Products or Services

Marginal note:Independent agreement

627.41 An institution shall not provide an optional product or service to a natural person — other than for business purposes — in an agreement in respect of another product or service.

Marginal note:Express consent — temporary offer

• 627.42 (1) If an optional product or service, or a product or service that would have been an optional product or service if it had been provided for an additional charge, is provided to a natural person — other than for business purposes — under a promotional, preferential, introductory or special offer other than an offer referred to in subsection (2), an institution shall not impose any charges for the use of the product or service as of the day on which the person will no longer benefit from the offer without obtaining, within five business days before that day, the person’s express consent to impose that charge.

• Marginal note:Express consent — number of uses

  (2) If an optional product or service, or a product or service that would have been an optional product or service if it had been provided for an additional charge, is provided to a natural person — other than for business purposes — under a promotional, preferential, introductory or special offer based on a specified number of uses, an institution shall not impose any charges after the last use of the product or service without obtaining, immediately after the last use, the person’s express consent to impose that charge.

• Marginal note:Use not consent

  (3) Use by the person of the product or service does not constitute express consent for the purpose of subsections (1) and (2).

Complaints Process

Marginal note:Procedures for dealing with complaints

• 627.43 (1) An institution shall

  • (a) establish procedures that are satisfactory to the Commissioner for dealing, within the prescribed period, with complaints;

  • (b) designate one of its officers or employees in Canada to be responsible for implementing those procedures; and

  • (c) designate one or more of its officers or employees in Canada to receive and deal with those complaints.

• Marginal note:Misleading terms

  (2) An institution shall not use any misleading term with respect to its procedures or designated officers or employees, including any term that suggests that the procedures, officers or employees are independent of the institution — such as the term “ombudsman” or any other term with a similar meaning — or any prescribed term.

• Marginal note:Filing with Commissioner

  (3) An institution shall file a copy of its procedures as amended from time to time with the Commissioner.

• Marginal note:Information regarding complaint procedure

  (4) An institution shall provide a person who makes a complaint with

  • (a) a written acknowledgment of the date on which it received the complaint;

  • (b) the information referred to in paragraphs 627.65(a) to (c); and

  • (c) any information that is necessary to enable them to meet the requirements of the procedures referred to in paragraph 627.65(a).

Marginal note:Record of complaint

627.44 An institution shall make, with respect to a complaint referred to in paragraph 627.43(1)(a), a record that is to be retained for a period of at least seven years and that contains

• (a) if the complaint was made in writing, the original version of the complaint;

• (b) if the complaint was made orally,

  • (i) the recording or a transcript of the recording if the complaint was recorded, or

  • (ii) the details of the complaint if the complaint was not recorded;

• (c) the name of the person who made the complaint;

• (d) the name of the person who requested or received from the institution the product or service to which the complaint relates;

• (e) the contact information provided by the person who made the complaint;

• (f) the date on which the institution received the complaint;

• (g) a description of the nature of the complaint and the product or service to which the complaint relates;

• (h) the date on which the complaint was resolved if, in the institution’s opinion, it was resolved to the satisfaction of the person who made the complaint;

• (i) a description of any actions that were taken by the institution to attempt to resolve the complaint;

• (j) a description of any compensation provided to the persons referred to in paragraph (c) or (d);

• (k) confirmation that the institution provided the information referred to in paragraphs 627.65(a) to (c) to the person who made the complaint, if the institution did so; and

• (l) any prescribed information.

Marginal note:Access to Commissioner

627.45 The institution shall ensure that the record retained under section 627.44 is accessible to the Commissioner.

Marginal note:Report to Commissioner

627.46 Within 60 days after the end of each quarter, an institution shall submit to the Commissioner in a form satisfactory to him or her, with respect to each complaint received by an officer or employee referred to in paragraph 627.43(1)(c) during that quarter,

• (a) a copy of the record retained under section 627.44, except the contact information referred to in paragraph 627.44(e) other than the postal code; and

• (b) any prescribed information.

Marginal note:Annual information

627.47 An institution shall, free of charge and within 135 days after the end of each financial year, make available the following information for that year on each of its websites through which it offers products or services in Canada and provide the information in writing to any person who requests it:

• (a) the number and nature of any complaints that were dealt with by the officer or employee designated by the institution to deal with complaints who holds the most senior position identified for that purpose in the procedures established by the institution;

• (b) the average length of time taken to deal with the complaints received by that officer or employee;

• (c) the number of complaints that, in the institution’s opinion, were resolved by that officer or employee to the satisfaction of the persons who made them; and

• (d) any prescribed information.

External Complaints Body

Marginal note:Purpose

627.471 The purpose of sections 627.48 to 627.54 is to enhance the process for dealing with complaints by establishing a regime comprised of a sole external complaints body that discharges its functions and performs its activities in a transparent, effective, timely and fair manner based on the principles of accessibility, accountability, impartiality and independence.