Articles
Canada - Gowlings Advertising and Marketing Law Newsletter
13/09/2010
The Impact of New Brunswick's Cost of Credit Disclosure Act
The New Brunswick Cost of Credit Disclosure Act and
Regulation are scheduled to come into force on September 15, 2010. The
new legislation will require that where a borrower must decline a rebate
(or a portion of the rebate) in order to enter into a credit agreement
at a particular interest rate, the APR must be calculated by factoring
in the forgone non-stackable rebate (i.e. effectively resulting in a
higher APR). This is very similar to the “Effective APR” disclosure
requirement in Ontario. Note: the legislation is unclear regarding
whether this requirement also applies to lease agreements. We are hoping
for clarification from the New Brunswick regulators in this regard.
The legislative provisions regarding advertising for fixed credit,
leases and interest-free periods are very similar to the requirements in
Ontario.
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