Credit Business Practices (Trust and Loan Companies, Retail Associations, Canadian Insurance Companies and Foreign Insurance Companies) Regulations

The Credit Business Practices Regulations, made under the Bank Act, Cooperative Credit Associations Act, Insurance Companies Act, and Trust and Loan Companies Act, regulate various aspects of credit business practices in Canada. The regulations apply to institutions such as banks, retail associations, insurance companies, and foreign insurance companies.

The regulations require institutions to provide borrowers with certain information and protections, including:

• Minimum grace periods for new purchases


• Allocation of payments among different amounts owing on a credit card account


• Prohibition on charging interest on purchases made on a credit card if the borrower pays in full on or before the due date


• Consent requirements for increases in credit limits and provision of credit card cheques

The regulations also outline debt collection practices, including:

• Disclosure of information about the debt to be collected


• Prohibition on harassment, intimidation, or coercive language when communicating with debtors


• Restrictions on contacting debtors at their workplace or through their employer


• Prohibition on misrepresenting the purpose of a communication in respect of debt collection

Additionally, the regulations outline specific rules for over-the-limit fees due to holds, consent requirements, and restrictions on charges made or incurred by institutions when collecting debts.

The regulations come into force on September 1, 2010, except for sections 3 and 4, which come into force on January 1, 2010.