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Demands regarding high-cost credit agreements

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Demands regarding high-cost credit agreements

The Consultation Paper considers a regulatory framework for high-cost financing that is much like the payday financing regime.

We identify underneath the key components of the proposition as well as contrast purposes have actually supplied some details regarding QuГ©bec’s framework.

Disclosure requirements: The Ministry proposes improved demands for loan providers to reveal and review essential stipulations of high-cost credit agreements with borrowers to make certain clear, simple and easy clear disclosure of rates, charges as well as other key loan features. Especially, the Consultation Paper proposes:

  • Strengthened disclosure needs for credit agreements which mimic those into the PLA; and
  • Disclosure demands for optional services and products ( e.g., to be able to guarantee customers recognize that a loan can certainly still be bought with no obligation to acquire such optional services, also to make sure that borrowers comprehend the price of the optional items or solution, that might be high in accordance with the prospective advantage to the debtor).

We keep in mind that QuГ©bec’s customer Protection Act (the QuГ©bec CPA) contains comparable demands with regards to loans and available credit/credit cards, that also affect high-cost credit. (more…)