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S.M. 1985-86, c. 40

An Act to amend The Consumer Protection Act

(Assented to July 11, 1985)

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

Cl. 1(bb.1) added.

1

The Consumer Protection Act, being chapter C200 of the Revised Statutes is amended by adding thereto, immediately after clause 1(bb) thereof, the following clause:

(bb.1) "variable rate agreement" means an agreement that is subject to variations in the true annual percentage rate of the cost of borrowing;.

Subsecs. 4(3), (4) and (5) added.

2

Section 4 of the Act is amended by adding thereto, immediately after subsection (2) thereof, the following subsections:

Variable rate agreement.

4(3)

A variable rate agreement under this section shall set out all the elements in clauses (2) (a) to (m) but all calculations therein shall be based on the true annual rate of the cost of borrowing at the time the agreement is signed as set out in clause (2) (1) and, in addition, the agreement shall clearly set forth in type of not less than 10 point size immediately above the borrower's signature a statement that the agreement is subject to variations in the true annual rate of the cost of borrowing and shall specify the conditions under which the true annual rate may vary and what other changes in the agreement may be made as a result of the variation.

Written notice.

4(4)

Except as provided by regulation, a credit grantor shall give at least every 6 months to the borrower who is a party to a variable rate agreement under this section a written notice that shall set out as of the date of the notice

(a) the amount of credit outstanding;

(b) the true annual rate being charged;

(c) the periodic payment and the number of payments remaining to be made;

(d) the projected final payment;

(e) the total obligation remaining; and

(f) the projected total cost of borrowing expressed as one amount in dollars and cents.

Consequence of failure to disclose.

4(5)

Where a variable rate agreement under this section does not contain the statement required by subsection (3), the credit grantor, notwithstanding the terms of the agreement, shall not be allowed to increase the true annual rate of the cost of borrowing or to make any other changes in the agreement but the borrower shall have the benefit of any term of the agreement which would decrease the true annual rate.

Subsecs. 5(3), (4) and (5) added.

3

Section 5 of the Act is amended by adding thereto, immediately after subsection (2) thereof, the following subsections:

Variable rate agreement.

5(3)

A variable rate agreement under this section shall set out all the elements in clauses (2) (a) to (m) but all calculations therein shall be based on the true annual rate of the cost of borrowing at the time the agreement is signed as set out in clause (2)(1) and, in addition, the agreement shall clearly set forth in type of not less than 10 point size immediately above the borrower's signature a statement that the agreement is subject to variations in the true annual rate of the cost of borrowing and shall specify the conditions under which the true annual rate may vary and what other changes in the agreement may be made as a result of the variation.

Written notice.

5(4)

Except as provided by regulation, a credit grantor shall give at least every 6 months to the borrower who is a party to a variable rate agreement under this section a written notice that shall set out as of the date of the notice

(a) the amount of credit outstanding;

(b) the true annual rate being charged;

(c) the periodic payment and the number of payments remaining to be made;

(d) the projected final payment;

(e) the total obligation remaining; and

(f) the projected total cost of borrowing expressed as one amount in dollars and cents.

Consequence of failure to disclose.

5(5)

Where a variable rate agreement under this section does not contain the statement required by subsection (3), the credit grantor, notwithstanding the terms of the agreement, shall not be allowed to increase the true annual rate of the cost of borrowing or to make any other changes in the agreement but the borrower shall have the benefit of any term of the agreement which would decrease the true annual rate.

Sec. 10 am.

4

Section 10 of the Act is amended

(a) by striking out the word and figure "or 5" where they appear in the 2nd line thereof and substituting therefor the word and figures "5 or 12"; and

(b) by adding thereto, immediately after the figure "8" where it appears in the 4th line thereof, the word and figures "or 12".

Cl. 12(1)(a) am.

5

Clause 12(1) (a) of the Act is amended by adding thereto, immediately after the word "money" thereof, the words "other than a loan secured exclusively on real property".

Subsec. 12(2) am.

6

Subsection 12(2) of the Act is amended

(a) by striking out the word "and" at the end of clause (c) thereof;

(b) by adding thereto, at the end of clause (d) thereof, the word "and"; and

(c) by adding thereto, immediately after clause (d) thereof, the following clause:

(e) the conditions under which the true annual rate may vary.

Subsec. 12(9) rep. and sub.

7

Subsection 12(9) of the Act is repealed and the following subsections are substituted therefor:

Variations in master agreement.

12(9)

Except as otherwise provided by regulation a credit grantor may increase

(a) the rate of charges payable by the borrower; and

(b) the minimum periodic payments payable by the borrower;

in respect of purchases of goods and services and loans of money including those made previously but any increase related to the purchase of goods and services shall only be effective 3 months after giving the borrower written notice of the increase.

Statement of disclosure.

12(9.1)

Except as provided by regulation, a credit grantor shall give at least every 6 months to the borrower in respect of a loan of money to which this section applies a written notice that shall set out as of the date of the notice

(a) the amount of credit outstanding;

(b) the true annual rate being charged; and

(c) the periodic payments.

Subsecs. 12(16), (17) and (18) added.

8

Section 12 of the Act is further amended by adding thereto, immediately after subsection (15) thereof, the following subsections:

Delivery of goods or services on variable credit.

12(16)

If an extension of variable credit for goods or services to which this section applies is signed prior to the delivery of the goods or performance of the services, the seller shall deliver the goods, or perform the services, not later than 7 days after the delivery date, which is

(a) the date for delivery or performance fixed by the writing; or

(b) if none is so fixed, the date on which the writing is received by the seller or his agent.

Late delivery.

12(17)

If the seller does not deliver the goods or perform the services within the time limited by subsection (16), the borrower is entitled to a rebate from the seller calculated by applying the true annual rate of the cost of borrowing to the amount owing with respect to those goods or services over the period of the seller's default.

Rights preserved.

12(18)

Nothing herein derogates from the borrower's right, if any, in the transaction to rescind or cancel for late delivery, failure to perform or otherwise.

Subsecs. 13(2.1), (2.2) and (2.3) added.

9

Section 13 of the Act is amended by adding thereto, immediately after subsection (2) thereof, the following subsections:

Variable rate agreement.

13(2.1)

A variable rate agreement under this section shall set out all the elements in clauses (2) (a) to (j) but all calculations therein shall be based on the true annual rate of the cost of borrowing at the time the agreement is signed as set out in clause (2) (i) and, in addition, the agreement shall clearly set forth in type of not less than 10 point size immediately above the borrower's signature a statement that the agreement is subject to variations in the true annual rate of the cost of borrowing and shall specify the conditions under which the true annual rate may vary and what other changes in the agreement may be made as a result of the variation.

Written notice.

13(2.2)

Except as provided by regulation, a credit grantor shall give at least every 6 months to the borrower who is a party to a variable rate agreement under this section a written notice that shall set out as of the date of the notice

(a) the amount of credit outstanding;

(b) the true annual rate being charged;

(c) the periodic payment and the number of payments remaining to be made;

(d) the projected final payment;

(e) the total obligation remaining; and

(f) the projected total cost of borrowing expressed as one amount in dollars and cents.

Consequence of failure to disclose.

13(2.3)

Where a variable rate agreement under this section does not contain the statement required by subsection (2.1), the credit grantor, notwithstanding the terms of the agreement, shall not be allowed to increase the true annual rate of the cost of borrowing or to make any other changes in the agreement but the borrower shall have the benefit of any term of the agreement which would decrease the true annual rate.

Subsec. 13(3) am.

10

Subsection 13(3) of the Act is amended by adding thereto, immediately after the word "agreement" where it appears in the 2nd line and in clauses (a) and (c) thereof, in each case, the words "or variable rate agreement".

Subsec. 13(5) am.

11

Subsection 13(5) of the Act is amended by adding thereto after the word and figure "subsection (2)" in the 4th line thereof, the word and figures "or (2.1)".

Sec. 15 am.

12

Section 15 of the Act is amended by striking out the words, letters and figures "clause (h) of subsection (2) of section 13 and of clause (g) of subsection (3) of section 14" in the 4th and 5th lines thereof and substituting therefor the words, figures and letters "clause 13(2)(h) for an agreement or a variable rate agreement under section 13 or clause 14(3)(g)".

Sec. 20 am.

13

Section 20 of the Act is amended by striking out the words, letters and figures "clauses (d) and (e) of subsection (2) of section 13" in the 1st line thereof and substituting therefor the words, figures and letters "clauses 13(2) (d) and (e) for an agreement or a variable rate agreement".

Subsec. 25(1) am.

14

Subsection 25(1) of the Act is amended by adding thereto, immediately after the words "loan agreement" where they appear in clauses (a) and (b) thereof, in each case, the words "or variable rate agreement".

Cl. 97(h.1) added.

15

Section 97 of the Act is amended by adding thereto, immediately after clause (h) thereof, the following clause:

(h.1) respecting the times when notices under subsections 4(4), 5(4), 12(9.1) and 13(2.2) shall be given to the borrower;.

Commencement of Act.

16

This Act comes into force on the day it receives the royal assent.