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Statutes of Newfoundland and Labrador 2010


CHAPTER 11

AN ACT TO AMEND THE CONSUMER PROTECTION AND BUSINESS PRACTICES ACT

(Assented to June 24, 2010)

Analysis


        1.   S.45 Amdt.
Interpretation

        2.   S.52 Amdt.
Payment of credit

        3.   S.55 Amdt.
Non-business credit grantors

        4.   S.56 Amdt.
Business credit grantors

        5.   S.69 Amdt.
Statements of account

        6.   S.110 Amdt.
Transitional


Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows:

SNL2009 cC-31.1

        1. (1) Paragraph 45(1)(d) of the Consumer Protection and Business Practices Act is repealed and the following substituted:

             (d)  "assumed residual payment" means

                      (i)  for an option lease under which the option price at the end of the term is less than the estimated residual value, that option price, and

                     (ii)  in any case, the estimated residual value plus an amount that the lessee will be required to pay in the ordinary course of events at the end of the term;

             (2)  Paragraph 45(1)(l) of the Act is repealed and the following substituted:

              (l)  "cash value", in relation to leased goods, means

                      (i)  where the lessor or an associate of the lessor sells like goods to cash customers in the ordinary course of carrying on business,

                            (A)  a value that fairly represents the price for which the lessor or associate of the lessor sells those goods to cash customers, or

                            (B)  where the lessor and the lessee agree on a lower cash value, that lower cash value, or

                     (ii)  where the lessor or an associate of the lessor does not sell like goods to cash customers in the ordinary course of carrying on business,

                            (A)  the lessor's reasonable estimate of the price at which cash customers would buy those goods, or

                            (B)  if the lessor and the lessee agree on a lower cash value, that lower cash value;

             (3)  Paragraph 45(1)(y) of the Act is repealed and the following substituted:

             (y)  "implicit finance charge" means the sum of all non-refundable payments required to be made by the lessee at or before the beginning of, or during, the term plus the assumed residual payment, minus the total amount advanced to the lessee;

             (4)  Subsection 45(1) of the Act is amended by adding immediately after paragraph (nn) the following:

       (nn.1)  "optional service" means a service that is offered to a borrower in connection with a credit agreement and that the borrower does not have to accept in order to enter into the credit agreement;

 

        2. Subsection 52(3) of the Act is repealed and the following substituted:

             (3)  Where a prepayment under subsection (2) is made with respect to a credit agreement for fixed credit, the credit grantor shall refund or credit to the borrower the portion of non-interest finance charges paid by the borrower or added to the outstanding balance as prescribed by regulation.

 

        3. Subparagraph 55(b)(ii) of the Act is repealed and the following substituted:

                     (ii)  accounts for the brokerage fee in the APR and the total cost of credit where the credit is a fixed credit.

 

        4. Subparagraph 56(1)(a)(ii) of the Act is repealed and the following substituted:

                     (ii)  accounts for the brokerage fee in the APR and the total cost of credit where the credit is a fixed credit; and

 

        5. Subsection 69(1) of the Act is amended by deleting the words "a statement of account containing the" and substituting the words "a statement of account containing as much of the following information as applicable".

 

        6. Paragraph 110(1)(a) of the Act is repealed and the following substituted:

             (a)  credit agreements for fixed credit and leases that are entered into, renewed or amended on or after the date of coming into force of the Part but does not apply to a fixed term lease whose term is extended unless the lessor and lessee have signed an agreement to extend the term; and