BILL 40
An Act to Amend the
Cost of Credit Disclosure Act
Her Majesty, by and with the advice and
consent of the Legislative Assembly of New Brunswick, enacts as follows:
1 Section
17 of the Cost of Credit Disclosure Act, chapter C-28.3 of the Acts
of New Brunswick, 2002, is amended
(a) in paragraph (a) of
the English version by striking out “and” at the end of
the paragraph;
(b) by adding after paragraph
(a) the following:
(a.1) if the information that is required
to be included is the annual interest rate, the annual interest rate
is disclosed at least as prominently as is the information that necessitated
the inclusion of the annual interest rate, and
2 Subsection
26(5) of the Act is repealed and the following is substituted:
26(5) Where the borrower pays or is required
to pay a brokerage fee, the credit broker shall ensure that the initial
disclosure statement for the credit agreement, in addition to containing
any other information required under this Act to be disclosed in an
initial disclosure statement for the credit agreement,
(a) states the amount of the brokerage
fee,
(b) accounts for the brokerage fee in
the total cost of credit, and
(c) in the case of a credit agreement
for fixed credit, accounts for the brokerage fee in the APR.
3 Section
27 of the Act is amended
(a) by repealing subsection
(2) and substituting the following:
27(2) Where the credit grantor deducts a brokerage fee from the value
received or to be received by the borrower in connection with the
credit agreement, the credit grantor shall ensure that the initial
disclosure statement for the credit agreement, in addition to containing
any other information required under this Act to be disclosed in an
initial disclosure statement for the credit agreement,
(a) states the amount of the brokerage
fee,
(b) accounts for the brokerage fee in
the total cost of credit, and
(c) in the case of a credit agreement
for fixed credit, accounts for the brokerage fee in the APR.
(b) in paragraph (3)(a) by striking out “paragraphs
(2)(a) and (b)” and substituting “subsection (2)”.
4 Paragraph
32(1)(i) of the French version of the Act is amended by striking out “taux
d’intérêt” and substituting “taux d’intérêt annuel”.
5 Section
39 of the Act is repealed and the following is substituted:
39 A credit grantor shall ensure that an advertisement
that is published by or on behalf of the credit grantor and that gives
any specific information about the cost of open credit states
(a) the current annual interest rate
for the open credit, and
(b) any initial or periodic non-interest
finance charges for the open credit.
6 Paragraph
41(1)(h) of the Act is repealed.
7 Paragraph
62(y) of the Act is repealed and the following is substituted:
(y) respecting the collection or recovery
of a debt owed to a credit grantor by a borrower or to a lessor by
a lessee, including, without limiting the generality of the foregoing,
(i) prohibiting the use of any particular
method in the collection or recovery of debts by a credit grantor
or lessor,
(ii) prescribing the nature and amount
of fees and other charges that a credit grantor or lessor may recover
or attempt to recover from a borrower or lessee in respect of debt
collection activities carried on by the credit grantor or lessor,
and
(iii) prohibiting the bringing of any
action by a credit grantor or lessor for the recovery of debt in any
court of this Province;
8 Schedule
A of the Act is amended by striking out
39(1)............... |
D |
39(2)............... |
D |
and
substituting the following:
COMMENCEMENT
9 This
Act or any provision of it comes into force on a day or days to be
fixed by proclamation.
EXPLANATORY NOTES
Section 1
(a) Consequential amendment.
(b) New provision.
Section 2
The existing provision is as follows:
26(5) Where the borrower pays or is required to pay a brokerage fee,
the credit broker shall ensure that the initial disclosure statement
for the credit agreement, in addition to containing any other information
required under this Act to be disclosed in an initial disclosure statement
for the credit agreement,
(a) states the amount of the brokerage
fee, and
(b) accounts for the brokerage fee in
the APR and the total cost of credit.
Section 3
(a) The existing provision is
as follows:
27(2) Where the credit grantor deducts a
brokerage fee from the value received or to be received by the borrower
in connection with the credit agreement, the credit grantor shall
ensure that the initial disclosure statement for the credit agreement,
in addition to containing any other information required under this
Act to be disclosed in an initial disclosure statement for the credit
agreement,
(a) states the amount of the brokerage
fee, and
(b) accounts for the brokerage fee in
the APR and the total cost of credit.
(b) Consequential amendment.
Section 4
A correction is made in the French version.
Section 5
The existing provision is as follows:
39(1) A credit grantor shall ensure that an advertisement that is published
by or on behalf of the credit grantor and that gives any specific
information about the cost of open credit that is not in relation
to a credit card states the APR for the open credit.
39(2) A credit card issuer shall ensure that an advertisement that
is published by or on behalf of the credit card issuer and that gives
any specific information about the cost of open credit that is in
relation to a credit card states
(a) the current annual interest rate
for the open credit, and
(b) any initial or periodic non-interest
finance charges for the open credit.
Section 6
The existing provision is as follows:
(h) for open credit that is not in relation
to a credit card, the APR;
Section 7
The existing provision is as follows:
(y) respecting the collection or recovery
of a debt owed to a credit grantor by a borrower or to a lessor by
a lessee;
Section 8
Consequential amendment.
Section 9
Commencement provision.