The new rules will ensure that consumers are provided with full and clear disclosure about costs before they sign a credit agreement, and that they have adequate protection to cancel an agreement within 48 hours or to pay back a loan early and without fee or penalty.
If you need to borrow money and are considering a high-cost credit product, shop around, take the time to review the loan agreement and take note of all fees that may occur during the term of the loan. Starting September 1, 2016, the lender will have to disclose:
- The principal amount of the loan
- The term of the loan
- The APR
- The annual interest rate
- Each high-cost credit fee that will or may be payable
- The total cost of credit
- The borrower's cancellation rights
For more information on the rules relating to high-cost credit products, please go to: //www.gov.mb.ca/cca/cpo/consumer_info.html.
The new legislation can be found at:
- The Consumer Protection Amendment Act (High-Cost Credit Products): https://web2.gov.mb.ca/bills/40-3/b034e.php.
- High-Cost Credit Products Regulation: //web2.gov.mb.ca/laws/regs/current/_pdf-regs.php?reg=7/2016.