NEWFOUNDLAND AND LABRADOR REGULATION 101/23

Important Information
(Includes details about the availability of printed and electronic versions of the Statutes.)

Short title

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

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.

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.

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.

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.

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.

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.

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.

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.

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.