Short title

        1. These regulations may be cited as the High-Cost Credit Product Licensing Regulations .

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Interpretation

        2. (1) In these regulations,

             (a)  "Act" means the Consumer Protection and Business Practices Act ; and

             (b)  "licence" means a licence issued to a high-cost credit grantor under subsection 86(4) of the Act to carry on a high-cost credit business.

             (2)  The definitions in section 2 and Parts VII.2 and VIII of the Act apply for the purpose of these regulations.

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Display of licence

        3. (1) A high-cost credit grantor shall prominently display a copy of its licence in each location to which the licence pertains.

             (2)  The director shall provide a high-cost credit grantor with a copy of the licence for each location to which the licence pertains.

             (3)  Where a high-cost credit grantor engages in high-cost credit business by means of the internet, the high-cost credit grantor shall display a copy of its licence prominently at or near the top of the introductory page of the website or mobile application.

             (4)  A high-cost credit grantor shall include its licence number in all representations and advertisements.

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Name on licence

        4. A high-cost credit grantor shall not engage in high-cost credit business in the province under a business name or trade name that differs from the name on its licence.

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Requirements for licence

        5. An applicant for a licence shall submit to the director

             (a)  a copy of each of the following documents:

                      (i )  the standard high-cost credit agreement,

                     (ii)  a sample high-cost credit agreement for $20,000 for 72 months, showing all fees and charges,

                    (iii)  the rate structure for a high-cost credit product, including interest and permissible fees and charges,

                    (iv)  the cancellation notice form,

                     (v)  the receipt for a high-cost credit product cancellation required under subsection 83.16(6) of the Act,

                    (vi)  the receipt for payments made by a borrower required under section 83.18 of the Act,

                   (vii)  the receipt for the return of a cash card required under subsection 83.19(3) of the Act, and

                  (viii)  a copy of the signs required under the High-Cost Credit Product Regulations ; and

             (b)  other information or documents required by the director.

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Notification required

        6. (1) In addition to the notification requirements under section 92 of the Act, the holder of a licence shall notify the director in writing with respect to a change in

             (a)  the information or documents provided to the director under section 5; and

             (b)  the addresses of the locations to which the licence applies.

             (2)  Notice referred to in subsection (1) shall be provided within 15 days of the change.

             (3)  Where a high-cost credit grantor amends a document that was submitted to the director under section 5, the high-cost credit grantor shall submit a copy of the amended document to the director within 15 days of the change.

             (4)  Where a high-cost credit grantor intends to engage in high-cost credit business at an additional location, the notice referred to in subsection (1) shall be provided to the director before engaging in the business at the new location.

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Creation of records

        7. A high-cost credit grantor shall create and maintain records relating to the high-cost credit grantor's collection activities with respect to each high-cost credit product, including logs of telephone calls and other records of contact.

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Use of information

        8. A high-cost credit grantor shall ensure that applications for high-cost credit products, high-cost credit agreements and other documents in respect of high-cost credit products

             (a)  are used only for the purpose of providing, administering or collecting high-cost credit products; and

             (b)  are not used in connection with the provision of goods or services.

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Retention of documents

        9. (1) A high-cost credit grantor shall retain high-cost credit agreements, receipts and other documents in respect of a high-cost credit product, including logs of telephone calls, records of contact, notes and other records relating to collection activities, for a period of 6 years after the date on which the high-cost credit product is fully repaid.

             (2)  Where a high-cost credit product is not repaid, a high-cost credit grantor shall retain the documents referred to in subsection (1) in respect of the high-cost credit product for a period of 6 years after the date of the last payment or written acknowledgement by the borrower.

             (3)  A high-cost credit grantor may retain the documents referred to in subsection (1) in an electronic format.

             (4)  Where the 6 year time period referred to in subsection (1) or (2) has expired, the high-cost credit grantor shall destroy the documents referred to in subsection (1) in a manner that will prevent unauthorized persons from gaining access to the documents.

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Commencement

      10. These regulations come into force on the day that An Act to Amend the Consumer Protection and Business Practices Act , SNL2022 c28, comes into force.

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