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Collection Agency Rules Quebec

 


The Office de la protection du consommateur is responsible for the application of 4 laws:

The Office is also responsible for the application of regulations and orders in council arising out of these laws.

Consumer Protection Act

The Consumer Protection Act:

  • regulates contracts entered into by consumers and merchants;
  • makes provisions for basic and legal guarantees on all goods and services;
  • makes provisions for specific protection related to certain types of contracts (credit, itinerant merchants, sales at a distance, automobile sales and repairs, long-term leases, etc.);
  • determines the fields of commercial activity in which the issuance of a permit is required;
  • oversees advertising intended for children under the age of 13 years;
  • prohibits merchants to engage in deceptive practices.

Regulation and orders in council arising out of the Consumer Protection Act

The Office is responsible for enforcing the following regulation and orders in council:

Act respecting the collection of certain debts

The Act respecting the collection of certain debts:

     

  • establishes the rules of conduct for any person who claims the payment of a debt;
  • requires a person who collects a debt to hold a permit and provide security.

Regulation respecting the application of the Act respecting the collection of certain debts

The Office is responsible for the application of the Regulation respecting the application of the Act respecting the collection of certain debts.

Travel Agents Act

The Travel Agents Act requires travel agents to:

     

  • hold a permit which is issued if the applicant respects certain criteria;
  • provide security that is proportional to their volume of business;
  • collect the contributions of customers to the Compensation fund for customers of travel agents and submit them to the Office. The Office is responsible for the management of this fund.

Regulation respecting travel agents

The Office is responsible for the enforcement of the Regulation respecting travel agents.

Act respecting prearranged funeral services and sepultures

The Act respecting prearranged funeral services and sepultures:

     

  • protects the amounts paid by the persons buying prearranged funeral services and sepultures ("prearrangements");
  • requires merchants to:

       

    • deposit in trust 90 % of the cost of goods and services that will be provided at the time of death;
    • adjust the amounts deposited in trust based on the evolution of the cost of living (inflation).

Regulation and order in council arising out of Act respecting prearranged funeral services and sepultures

The Office is responsible for the application of the following regulation and order in council:

PRELIMINARY TITLE 
INTERPRETATION AND APPLICATION

 

1. In this Act, unless the context indicates otherwise,

 

 (a)  “address”

 

(i)  of the merchant means the place of his establishment or office indicated in the contract, or of a new establishment or office of which he subsequently notifies the consumer, except a post office box;

 

(ii)  of the manufacturer means the place of one of his establishments in Canada, except a post office box;

 

(iii)  of the consumer means the place of his usual residence indicated in the contract, or of a new residence of which he subsequently notifies the merchant;

 

 (b)  “automobile” means a vehicle propelled by any power other than muscular force and adapted for transportation on the public highways, except a moped or a motorcycle;

 

 (c)  “used automobile” or “used motorcycle” means an automobile or a motorcycle which has been used for any purpose other than its delivery or preparation for delivery by the merchant, the manufacturer or their representative;

 

 (d) “goods” means any movable property and, to the extent required for the application of section 6.1, any immovable property;

 

 (e)  “consumer” means a natural person, except a merchant who obtains goods or services for the purposes of his business;

 

 (e.1) “contract of additional warranty” means a contract under which a merchant binds himself toward a consumer to assume directly or indirectly all or part of the costs of repairing or replacing goods or a part thereof in the event that they are defective or malfunction, otherwise than under a basic conventional warranty given gratuitously to every consumer who purchases the goods or has them repaired;

 

 (f)  “credit” means the right granted by a merchant to a consumer to perform an obligation within a term in consideration of certain charges;

 

 (g)  “manufacturer” means a person in the business of assembling, producing or processing goods, and, in particular,

 

(i)  a person who represents himself to the public as the manufacturer of goods;

 

(ii)  where the manufacturer has no establishment in Canada, a person who imports or distributes goods manufactured outside Canada or a person who allows his trademark to be used on goods;

 

 (h)  “advertisement” means a message designed to promote goods, services or an organization in Québec;

 

 (i) “Minister” means the Minister of Justice;

 

 (j) “Office” means the Office de la protection du consommateur established under section 291;

 

 (k)  “permit” means a permit required by this Act;

 

 (l) “president” means the president of the Office;

 

 (m)  “advertiser” means a person who prepares, publishes or broadcasts an advertisement or who causes an advertisement to be prepared, published or broadcast;

 

 (n)  “regulation” means a regulation made by the Government under this Act;

 

 (o)  “representative” means a person acting for a merchant or a manufacturer or regarding whom a merchant or a manufacturer has given reasonable cause to believe that such person is acting for him;

 

 (p) (subparagraph repealed).

 

In this Act, the word “merchant” includes any person doing business or extending credit in the course of his business.

 

1978, c. 9, s. 1; 1981, c. 10, s. 19; 1985, c. 34, s. 269; 1988, c. 45, s. 1; 1994, c. 12, s. 69; 1996, c. 21, s. 64; 2005, c. 24, s. 48; 2009, c. 51, s. 1.

 

2. This Act applies to every contract for goods or services entered into between a consumer and a merchant in the course of his business.

 

1978, c. 9, s. 2.

 

3. Notwithstanding section 128 of the Cooperatives Act (chapter C-67.2) or section 64 of the Act respecting financial services cooperatives (chapter C-67.3), cooperatives and financial services cooperatives are subject to the application of this Act.

 

Non-profit legal persons cannot invoke their non-profit status to avoid the application of this Act.

 

1978, c. 9, s. 3; 1982, c. 26, s. 313; 1988, c. 64, s. 560, s. 587; 1999, c. 40, s. 234; 2000, c. 29, s. 663.

 

4. The Government and the Government departments and agencies are subject to the application of this Act.

 

1978, c. 9, s. 4.

 

5. The following are exempt from the application of the title on contracts regarding goods and services and the title on sums transferred in trust:

 

 (a) insurance and annuity contracts, except credit contracts entered into for the payment of insurance premiums;

 

 (b) contracts of sale of electricity or gas by a distributor within the meaning of the Act respecting the Régie de l'énergie (chapter R-6.01), by Hydro-Québec established by the Hydro-Québec Act (chapter H-5), by a municipality or by a cooperative established under the Rural Electrification Act (1945, chapter 48);

 

 (c) (paragraph repealed).

 

1978, c. 9, s. 5; 1986, c. 21, s. 17; 1988, c. 23, s. 98; 1988, c. 8, s. 92; 1996, c. 2, s. 791; 1996, c. 61, s. 128; 1997, c. 83, s. 44; 1999, c. 40, s. 234; 2006, c. 56, s. 1.

 

5.1. Contracts governed by the Act respecting prearranged funeral services and sepultures (chapter A-23.001) are exempt from the application of the division on contracts entered into by itinerant merchants, of section 86 and of the title on sums transferred in trust.

 

1987, c. 65, s. 88; 1999, c. 40, s. 234.

 

6. Business practices and contracts regarding

 

 (a) transactions governed by the Derivatives Act (chapter I-14.01) or the Securities Act (chapter V-1.1);

 

 (b) the sale, lease or construction of an immovable, subject to section 6.1;

 

not in force

 (c) credit secured by hypothec; and

 

 (d) the furnishing of services for the repair, maintenance or improvement of an immovable, or both the furnishing of such services and the sale of goods incorporated into the immovable, except respecting credit when the furnishing of services or both the furnishing of services and the sale of goods involve credit not secured by hypothec,

 

 

are exempt from the application of this Act.

 

1978, c. 9, s. 6; 1985, c. 34, s. 270; 2008, c. 24, s. 195.

 

6.1. This title, title II respecting business practices, sections 264 to 267 and 277 to 290 of title IV, chapter I of title V and paragraphs c, k and r of section 350 also apply to the sale, lease or construction of an immovable, but not to the acts of a broker or his agent governed by the Real Estate Brokerage Act (chapter C-73.1) or to the leasing of an immovable governed by articles 1892 to 2000 of the Civil Code.

 

1985, c. 34, s. 271; 1999, c. 40, s. 234.

 

7. The surety of a consumer benefits to the same extent as the consumer by the provisions of sections 32, 33, 103, 105 to 110, 116, section 150.12 regarding the application of section 103, sections 150.21 and 276, provided he is a consumer himself.

 

1978, c. 9, s. 7; 1991, c. 24, s. 1.

 

TITLE I 
CONTRACTS REGARDING GOODS AND SERVICES

 

CHAPTER I 
GENERAL PROVISIONS

 

8. The consumer may demand the nullity of a contract or a reduction in his obligations thereunder where the disproportion between the respective obligations of the parties is so great as to amount to exploitation of the consumer or where the obligation of the consumer is excessive, harsh or unconscionable.

 

1978, c. 9, s. 8.

 

9. Where the court must determine whether a consumer consented to a contract, it shall consider the condition of the parties, the circumstances in which the contract was entered into and the benefits arising from the contract for the consumer.

 

1978, c. 9, s. 9.

 

10. Any stipulation whereby a merchant is liberated from the consequences of his own act or the act of his representative is prohibited.

 

1978, c. 9, s. 10.

 

11. Any stipulation whereby a merchant reserves the right to decide unilaterally

 

 (a) that the consumer has failed to satisfy one or another of his obligations, or

 

 (b) that a fact or circumstance has occurred,

 

is prohibited.

 

1978, c. 9, s. 11.

 

11.1. Any stipulation that obliges the consumer to refer a dispute to arbitration, that restricts the consumer's right to go before a court, in particular by prohibiting the consumer from bringing a class action, or that deprives the consumer of the right to be a member of a group bringing a class action is prohibited.

 

If a dispute arises after a contract has been entered into, the consumer may then agree to refer the dispute to arbitration.

 

2006, c. 56, s. 2.

 

11.2. Any stipulation under which a merchant may amend a contract unilaterally is prohibited unless the stipulation also

 

 (a) specifies the elements of the contract that may be amended unilaterally;

 

 (b) provides that the merchant must send to the consumer, at least 30 days before the amendment comes into force, a written notice drawn up clearly and legibly, setting out the new clause only, or the amended clause and the clause as it read formerly, the date of the coming into force of the amendment and the rights of the consumer set forth in subparagraph c; and

 

 (c) provides that the consumer may refuse the amendment and rescind or, in the case of a contract involving sequential performance, cancel the contract without cost, penalty or cancellation indemnity by sending the merchant a notice to that effect no later than 30 days after the amendment comes into force, if the amendment entails an increase in the consumer's obligations or a reduction in the merchant's obligations.

 

However, except in the case of an indeterminate-term service contract, such a stipulation is prohibited if it applies to an essential element of the contract, particularly the nature of the goods or services that are the object of the contract, the price of the goods or services or, if applicable, the term of the contract.

 

Any amendment of a contract in contravention of this section cannot be invoked against the consumer.

 

This section does not apply to the amendment of a contract extending variable credit as provided for in section 129.

 

2009, c. 51, s. 2.

 

11.3. Any stipulation under which the merchant may unilaterally cancel a fixed-term service contract involving sequential performance is prohibited, except under articles 1604 and 2126 of the Civil Code and, in the latter case, only in accordance with article 2129 of the Code.

 

A merchant who intends to cancel an indeterminate-term service contract involving sequential performance must notify the consumer in writing at least 60 days before the date of cancellation if the consumer has not defaulted on his obligation.

 

2009, c. 51, s. 2.

 

11.4. Any stipulation which excludes the application of all or part of articles 2125 and 2129 of the Civil Code regarding the resiliation of contracts of enterprise and for services is prohibited.

 

2009, c. 51, s. 2.

 

12. No costs may be claimed from a consumer unless the amount thereof is precisely indicated in the contract.

 

1978, c. 9, s. 12.

 

13. Any stipulation requiring the consumer, upon the non-performance of his obligation, to pay a stipulated fixed amount or percentage of charges, penalties or damages, other than the interest accrued, is prohibited.

 

The prohibition under the first paragraph does not apply to contracts of sale or long-term contracts of lease of automobiles, except with respect to charges and subject to the conditions set out in the regulation.

 

This section does not apply to a contract of credit.

 

1978, c. 9, s. 13; 1980, c. 11, s. 105; 2009, c. 51, s. 3.

 

14. Sections 105 to 110 apply, with the necessary modifications, to resolutory clauses or to agreements to the same effect in favour of the merchant, and to contracts containing a clause of forfeiture of benefit of the term, whether or not such contracts are contracts of credit.

 

1978, c. 9, s. 14.

 

15. Sections 133 to 149 apply, with the necessary modifications, to a contract, whether a contract of credit or not, whereby the transfer of ownership of goods sold by a merchant to a consumer is deferred until the performance by the consumer of the whole or a part of his obligation.

 

1978, c. 9, s. 15.

 

16. The principal obligation of the merchant is to deliver the goods or to perform the service stipulated in the contract.

 

In a contract involving sequential fulfilment, the merchant is presumed to be performing his principal obligation when he begins to perform it in accordance with the contract.

 

1978, c. 9, s. 16; 1999, c. 40, s. 234.

 

17. In case of doubt or ambiguity, the contract must be interpreted in favour of the consumer.

 

1978, c. 9, s. 17; 1999, c. 40, s. 234.

 

18. Where a merchant inserts in a contract or document a clause that this Act or a regulation requires to be included in another contract or document, this clause is binding on the merchant and it may be invoked by the consumer.

 

1978, c. 9, s. 18.

 

19. Any stipulation in a contract that such contract is wholly or partly governed by a law other than an Act of the Parliament of Canada or of the Parliament of Québec is prohibited.

 

1978, c. 9, s. 19.

 

19.1. A stipulation that is inapplicable in Québec under a provision of this Act or of a regulation that prohibits the stipulation must be immediately preceded by an explicit and prominently presented statement to that effect.

 

2009, c. 51, s. 4.

 

20. (Repealed).

 

1978, c. 9, s. 20; 2006, c. 56, s. 3.

 

21. (Repealed).

 

1978, c. 9, s. 21; 2006, c. 56, s. 3.

 

22. (Repealed).

 

1978, c. 9, s. 22; 1987, c. 90, s. 1; 2006, c. 56, s. 3.

 

22.1. An election of domicile with a view to the execution of a juridical act or the exercise of the rights arising therefrom may not be set up against the consumer, except if it is made by notarial act.

 

1992, c. 57, s. 671.

 

CHAPTER II 
RULES GOVERNING THE MAKING OF CERTAIN CONTRACTS IN RESPECT OF WHICH TITLE I REQUIRES A WRITING

 

23. This chapter applies to contracts which, under section 58, 80, the first paragraph of section 150.4, section 158, 190, 199, 208 or 214.2, must be evidenced in writing.

 

This chapter does not apply to notarial instruments.

 

1978, c. 9, s. 23; 1991, c. 24, s. 2; 2009, c. 51, s. 5.

 

24. The offers, promises or agreements prior to a contract that must be evidenced in writing are not binding on the consumer unless they are confirmed in a contract entered into in accordance with this title.

 

1978, c. 9, s. 24.

 

25. The contract must be drawn up clearly and legibly, at least in duplicate and, except in the case of a distance contract, in paper form.

 

1978, c. 9, s. 25; 2001, c. 32, s. 101; 2009, c. 51, s. 6.

 

26. The contract and the documents attached thereto must be drawn up in French. They may be drawn up in another language if the parties expressly agree thereto. Where they are drawn up in French and in another language, in the case of a divergence between the texts, the interpretation more favourable to the consumer prevails.

 

1978, c. 9, s. 26.

 

27. Subject to section 29, the merchant must sign the written contract duly filled out, give it to the consumer and grant him a sufficient time to become aware of its terms and scope before signing it.

 

1978, c. 9, s. 27; 1999, c. 40, s. 234.

 

28. Subject to section 29, the signature of the parties must appear on the page of each copy of the contract, at the end of all the conditions.

 

1978, c. 9, s. 28.

 

29. Sections 27 and 28 do not apply to a contract extending variable credit made for the use of what are commonly called credit cards. In the case of such a contract, the issue of the card is in lieu of the merchant's signature and the use of the card by the consumer is in lieu of the consumer's signature.

 

1978, c. 9, s. 29.

 

30. The contract is concluded when the parties have signed it.

 

1978, c. 9, s. 30.

 

31. The signature of the representative of a merchant on a contract is binding on such merchant.

 

1978, c. 9, s. 31.

 

32. After the contract is signed, the merchant must give a duplicate of it to the consumer.

 

1978, c. 9, s. 32.

 

33. The consumer is bound to fulfil his obligations only from the moment he possesses a duplicate of the contract.

 

1978, c. 9, s. 33.

 

CHAPTER III 
PROVISIONS RELATING TO CERTAIN CONTRACTS

 

DIVISION I 
WARRANTIES

 

34. This division applies to contracts of sale or lease of goods and to contracts of service.

 

1978, c. 9, s. 34; 1999, c. 40, s. 234.

 

35. A warranty provided in this Act does not prevent the merchant or the manufacturer from offering a more advantageous warranty to the consumer.

 

1978, c. 9, s. 35.

 

36. A merchant transferring the ownership of goods to a consumer by way of a contract must free such goods from every charge or encumbrance in favour of a third person, or declare the existence of such charge or encumbrance at the time of the sale. He is bound to discharge the goods of every surety-bond, even declared, unless the consumer has assumed the debt so secured.

 

1978, c. 9, s. 36.

 

37. Goods forming the object of a contract must be fit for the purposes for which goods of that kind are ordinarily used.

 

1978, c. 9, s. 37.

 

38. Goods forming the object of a contract must be durable in normal use for a reasonable length of time, having regard to their price, the terms of the contract and the conditions of their use.

 

1978, c. 9, s. 38.

 

39. Where goods being the object of a contract are of a nature that requires maintenance, replacement parts and repair service must be available for a reasonable time after the making of the contract.

 

The merchant or the manufacturer may release himself from this obligation by warning the consumer in writing, before the contract is entered into, that he does not supply replacement parts or repair service.

 

1978, c. 9, s. 39.

 

40. The goods or services provided must conform to the description made of them in the contract.

 

1978, c. 9, s. 40.

 

41. The goods or services provided must conform to the statements or advertisements regarding them made by the merchant or the manufacturer. The statements or advertisements are binding on that merchant or that manufacturer.

 

1978, c. 9, s. 41.

 

42. A written or verbal statement by the representative of a merchant or of a manufacturer respecting goods or services is binding on that merchant or manufacturer.

 

1978, c. 9, s. 42.

 

43. A warranty respecting goods or services that is mentioned in a statement or advertisement of the merchant or the manufacturer is binding on that merchant or that manufacturer. This rule applies to the written warranties of the merchant or the manufacturer not written in the contract.

 

1978, c. 9, s. 43.

 

44. In a conventional warranty, exclusions are prohibited unless they are clearly indicated in separate and successive clauses.

 

1978, c. 9, s. 44.

 

45. Every writing evidencing a warranty must be clearly drawn up and state

 

 (a) the name and address of the person offering the warranty;

 

 (b) the description of the goods or services that are the object of the warranty;

 

 (c) the fact that the warranty may or may not be transferred;

 

 (d) the obligations of the person granting the warranty in the case of a defect in the goods or of the improper carrying out of the services covered by the warranty;

 

 (e) the manner in which the consumer is to proceed to obtain execution of the warranty, and the persons authorized to execute it; and

 

 (f) the duration of the warranty.

 

1978, c. 9, s. 45.

 

46. The duration of a warranty mentioned in a contract, a writing or in an advertisement of a merchant or a manufacturer must be determined precisely.

 

1978, c. 9, s. 46.

 

47. Where the manufacturer's conventional warranty is valid only if the goods or services are supplied by a merchant certified by the manufacturer, another merchant supplying such goods or such services without being certified by the manufacturer must, before supplying the goods or services to the consumer, notify the consumer in writing that the manufacturer's warranty is not valid. Failing that notification, the merchant is bound to assume that warranty at his expense.

 

1978, c. 9, s. 47.

 

48. No charge may be exacted by the merchant or the manufacturer for the performance of a conventional warranty unless the writing evidencing the warranty stipulates it and precisely determines the amount.

 

1978, c. 9, s. 48.

 

49. The merchant or the manufacturer shall assume the real cost of transportation or shipping incurred in respect of the performance of a conventional warranty, unless otherwise stipulated in the writing evidencing the warranty.

 

1978, c. 9, s. 49.

 

50. The duration of a warranty provided by this Act or of a conventional warranty shall be extended for a period equal to the time during which the merchant or the manufacturer has had the goods or a part of the goods in his possession for the performance of the warranty or pursuant to the recall of the goods or part of the goods by the manufacturer.

 

1978, c. 9, s. 50.

 

51. The designation by the merchant or the manufacturer of a third person to perform the warranty provided for by this Act or a conventional warranty does not free them of their obligation of warranty to the consumer.

 

1978, c. 9, s. 51.

 

52. The merchant or the manufacturer shall not make the validity of a conventional warranty conditional upon the consumer using a product which is identified by brand name, unless at least one of the three following conditions is fulfilled:

 

 (a) the product is supplied to him free of charge;

 

 (b) the warranted goods will not function properly unless that product is used;

 

 (c) the conventional warranty forms the object of a separate contract entered into for valuable consideration.

 

1978, c. 9, s. 52.

 

52.1. The merchant or manufacturer may not require that the consumer prove that the previous owners or lessees of the goods complied with the conditions of the warranty.

 

2009, c. 51, s. 7.

 

53. A consumer who has entered into a contract with a merchant is entitled to exercise directly against the merchant or the manufacturer a recourse based on a latent defect in the goods forming the object of the contract, unless the consumer could have discovered the defect by an ordinary examination.

 

The same rule applies where there is a lack of instructions necessary for the protection of the user against a risk or danger of which he would otherwise be unaware.

 

The merchant or the manufacturer shall not plead that he was unaware of the defect or lack of instructions.

 

The rights of action against the manufacturer may be exercised by any consumer who is a subsequent purchaser of the goods.

 

1978, c. 9, s. 53.

 

54. A consumer having entered into a contract with a merchant may take action directly against the merchant or the manufacturer to assert a claim based on an obligation resulting from section 37, 38 or 39.

 

Rights of action against the manufacturer based on an obligation resulting from section 37 or 38 may be exercised by any consumer who is a subsequent purchaser of the goods.

 

1978, c. 9, s. 54.

 

DIVISION I.1 
DISTANCE CONTRACTS

 

54.1. A distance contract is a contract entered into without the merchant and the consumer being in one another's presence and preceded by an offer by the merchant to enter into such a contract.

 

A merchant is deemed to have made an offer to enter into a distance contract if the merchant's proposal comprises all the essential elements of the intended contract, regardless of whether there is an indication of the merchant's willingness to be bound in the event the proposal is accepted and even if there is an indication to the contrary.

 

2006, c. 56, s. 5.

 

54.2. A distance contract is deemed to be entered into at the address of the consumer.

 

2006, c. 56, s. 5.

 

54.3. No merchant who makes an offer to enter into or enters into a distance contract may collect or offer to collect a partial or full payment from the consumer before performing the merchant's principal obligation, unless the consumer may request a chargeback of the payment under this Act or a regulation.

 

2006, c. 56, s. 5.

 

54.4. Before a distance contract is entered into, the merchant must disclose the following information to the consumer:

 

 (a) the merchant's name and any other name under which the merchant carries on business;

 

 (b) the merchant's address;

 

 (c) the merchant's telephone number and, if available, the merchant's fax number and technological address;

 

 (d) a detailed description of goods or services that are to be the object of the contract, including characteristics and technical specifications;

 

 (e) an itemized list of the prices of the goods or services that are to be the object of the contract, including associated costs charged to the consumer and any additional charges payable under an Act;

 

 (f) a description of any possible additional charges payable to a third party, such as customs duties and brokerage fees, whose amounts cannot reasonably be determined;

 

 (g) the total amount to be paid by the consumer under the contract and, if applicable, the amount of instalments, the rate applicable to the use of an incidental good or service and the terms of payment;

 

 (h) the currency in which amounts owing under the contract are payable if not Canadian dollars;

 

 (i) the date on which, or the time within which, the merchant's principal obligation must be performed;

 

 (j) if applicable, the mode of delivery, the name of the carrier and the place of delivery;

 

 (k) the applicable cancellation, rescission, return, exchange and refund conditions, if any; and

 

 (l) any other applicable restrictions or conditions.

 

The merchant must present the information prominently and in a comprehensible manner and bring it expressly to the consumer's attention; in the case of a written offer, the merchant must present the information in a manner that ensures that the consumer is able to easily retain it and print it.

 

2006, c. 56, s. 5.

 

54.5. Before a distance contract is entered into, the merchant must provide the consumer with an express opportunity to accept or decline the proposal and to correct any errors.

 

2006, c. 56, s. 5.

 

54.6. A distance contract must be evidenced in writing and indicate:

 

 (a) the consumer's name and address;

 

 (b) the date the contract is entered into; and

 

 (c) the information described in section 54.4, as disclosed before the contract was entered into.

 

2006, c. 56, s. 5.

 

54.7. The merchant must send a copy of the contract to the consumer within 15 days after the contract is entered into, in a manner that ensures that the consumer may easily retain it and print it.

 

2006, c. 56, s. 5.

 

54.8. The consumer may cancel the contract within seven days after receiving a copy if

 

 (a) the merchant did not disclose to the consumer the information described in section 54.4 before the contract was entered into, or did not disclose it in accordance with that section;

 

 (b) the merchant did not provide the consumer with an express opportunity, before the contract was entered into, to accept or decline the proposal or to correct any errors;

 

 (c) the contract does not meet the requirements of section 54.6; or

 

 (d) the merchant did not send a copy of the contract in a manner that ensures that the consumer may easily retain it and print it.

 

However, the cancellation period begins as of the merchant's performance of the principal obligation if the consumer, at that time, observes that the merchant has not disclosed all the information described in section 54.4.

 

If the merchant does not send a copy of the contract to the consumer within the time provided for in section 54.7, the consumer has 30 days, as of the date the contract is entered into, in which to cancel the contract.

 

2006, c. 56, s. 5.

 

54.9. In addition to the cases provided for in section 54.8, a distance contract may be cancelled by the consumer at any time before performance of the merchant's principal obligation if

 

 (a) the merchant's principal obligation is not performed within 30 days after the date specified in the contract or the later date agreed on in writing by the consumer and the merchant, or within 30 days after the contract is entered into in the case of a contract that does not specify a date or time limit for the merchant's principal obligation to be performed; or

 

 (b) the contract is for transportation, lodging or restaurant services, or for tickets to an event, and the merchant does not provide the consumer, by the date specified in the contract or the later date agreed on in writing by the consumer and the merchant, with documents enabling the consumer to receive the services or attend the event.

 

2006, c. 56, s. 5.

 

54.10. The merchant's principal obligation is presumed to have been performed if the merchant attempted to perform it on the date specified in the contract, on a later date agreed on in writing by the consumer and the merchant, or on the date specified in a notice sent to the consumer within a reasonable time, but was prevented from doing so by the actions or negligence of the consumer.

 

2006, c. 56, s. 5.

 

54.11. The consumer's right to cancel the contract is exercised by sending a notice to that effect to the merchant.

 

2006, c. 56, s. 5.

 

54.12. The contract is cancelled by operation of law as of the sending of the cancellation notice.

 

The cancellation of the contract entails the cancellation of any accessory contract and of any warranty or security given to guarantee the amount payable under the contract.

 

A contract of credit entered into between the consumer and another merchant under or in relation to a distance contract forms a whole with that contract and, as such, is also cancelled by operation of law if it results from an offer, representation or other action by the merchant who is party to the distance contract.

 

2006, c. 56, s. 5.

 

54.13. Within 15 days following the cancellation of the contract, the merchant must refund all sums paid by the consumer under the contract and any accessory contract, including sums paid to a third person.

 

Within 15 days following the cancellation of the contract or following delivery if it postdates cancellation, the consumer must restore the goods that were the object of the contract to the merchant in the same state in which they were received.

 

The merchant shall assume the reasonable costs of restitution.

 

2006, c. 56, s. 5.

 

54.14. If the merchant defaults on the obligation to make a refund under section 54.13 and the consumer has paid by credit card, the consumer may, within 60 days following the default, request the card issuer to chargeback all amounts paid under the contract and any accessory contract, and to cancel all charges made to the consumer's account in relation to those contracts.

 

2006, c. 56, s. 5.

 

54.15. A chargeback request must be in writing and contain the following information:

 

 (a) the credit cardholder's name;

 

 (b) the credit card number and expiry date;

 

 (c) the merchant's name;

 

 (d) the date the contract was entered into;

 

 (e) the amount charged to the credit card account and the sums to be refunded by the merchant;

 

 (f) a description of the goods or services that are the object of the contract and for which chargeback is requested;

 

 (g) the reason for cancelling the contract; and

 

 (h) the date of cancellation and the means used to send the cancellation notice.

 

2006, c. 56, s. 5.

 

54.16. A credit card issuer that receives a chargeback request must

 

 (a) acknowledge receipt within 30 days;

 

 (b) make the chargeback and cancel all credit card charges in connection with the distance contract and any accessory contract within 90 days or two complete periods, as defined in section 67, following receipt of the request, whichever comes first.

 

2006, c. 56, s. 5.

 

DIVISION II 
CONTRACTS ENTERED INTO BY ITINERANT MERCHANTS

 

55. An itinerant merchant is a merchant who, personally or through a representative, elsewhere than at his address,

 

 (a) solicits a particular consumer for the purpose of making a contract; or

 

 (b) makes a contract with a consumer.

 

1978, c. 9, s. 55.

 

56. Sections 58 to 65 apply to contracts of sale or lease of goods and to contracts of service entered into by an itinerant merchant, except contracts excluded by regulation.

 

1978, c. 9, s. 56; 1998, c. 6, s. 1; 1999, c. 40, s. 234.

 

57. Subject to the regulations, a contract entered into at the address of the consumer upon his express demand does not constitute a contract entered into by an itinerant merchant, provided such contract was not solicited elsewhere than at the merchant's address.

 

1978, c. 9, s. 57.

 

58. The contract must be evidenced in writing and indicate:

 

 (a) the itinerant merchant's permit number;

 

 (b) the name, address and telephone number and, where applicable, the electronic address and fax number of each establishment of the itinerant merchant in Québec and each representative of the itinerant merchant who signed the contract;

 

 (b.1) the name, address and telephone number and, where applicable, the electronic address and fax number of the consumer;

 

 (c) the date on which the contract is made and the address where it is signed;

 

 (d) the description and quantity of the goods that are the object of the contract, the year of the model or any other distinguishing mark, and the duration of each service provided for by the contract;

 

 (e) the cash price of each item of goods or services;

 

 (f) the amounts of all duties chargeable under any federal or provincial Act;

 

 (g) the total amount the consumer must pay under the contract;

 

 (g.1) where applicable, the terms and conditions of payment; in the case of a contract of credit, the terms and conditions of payment are set out as provided in Schedule 3, 5 or 7;

 

 (g.2) the frequency and dates of all deliveries of goods and the frequency and dates of all performances of services, as well as the date by which delivery or performance must be completed;

 

 (g.3) where applicable, a description of all goods received as a trade-in or on account, their quantity, and the price agreed for each item;

 

 (h) the right granted to the consumer to cancel the contract at his sole discretion within ten days after that on which each of the parties is in possession of a duplicate of the contract;

 

 (i) any other information prescribed by regulation.

 

The merchant must attach a Statement of consumer cancellation rights and cancellation form in conformity with the model in Schedule 1 to the duplicate of the contract which he remits to the consumer.

 

1978, c. 9, s. 58; 1998, c. 6, s. 2.

 

59. The contract made between an itinerant merchant and a consumer may be cancelled at the discretion of the consumer within ten days following that on which each of the parties is in possession of a duplicate of the contract.

 

The time limit is, however, extended to one year from the date on which the contract is made in any of the following cases:

 

 (a) the merchant does not hold the permit required by this Act at the time the contract is made;

 

 (b) the security furnished by the itinerant merchant is invalid or is not in conformity with the security required under this Act at the time the contract is made;

 

 (c) the contract is inconsistent with any of the rules set out in sections 25 to 28 for the making of contracts, or one of the particulars required under section 58 does not appear in the contract;

 

 (d) a Statement of consumer cancellation rights and a cancellation form in conformity with the model in Schedule 1 have not been attached to the contract at the time the contract was made;

 

 (e) the merchant fails to deliver the goods or perform the service within 30 days from the delivery or performance date specified in the contract or a later date agreed to by the consumer, unless the consumer accepts delivery or performance after that time has expired.

 

1978, c. 9, s. 59; 1998, c. 6, s. 3.

 

60. The itinerant merchant cannot receive a partial payment or payment in full from the consumer before the expiry of the time for cancellation provided for in section 59 for as long as the consumer has not received the goods forming the object of the contract.

 

1978, c. 9, s. 60; 1999, c. 40, s. 234.

 

61. The consumer avails himself of his right of cancellation

 

 (a) by returning the goods to the itinerant merchant or his representative;

 

 (b) by returning the form referred to in section 58 to the itinerant merchant or his representative; or

 

 (c) by a notice in writing for that purpose to the itinerant merchant or his representative.

 

1978, c. 9, s. 61.

 

62. The contract is cancelled of right from the return of the goods or the sending of the form or the notice.

 

A contract of credit made by the consumer, even with another merchant, under or in relation to a contract made with an itinerant merchant, forms part of the whole contract and is also cancelled of right if it was made as a result of an offer or representation made by, or any other action of, the itinerant merchant.

 

1978, c. 9, s. 62; 1998, c. 6, s. 5.

 

63. Within 15 days following the cancellation, the parties must restore what they have received from one another.

 

If the itinerant merchant is unable to restitute to the consumer the goods received in payment, as a trade-in or on account, the merchant must remit to the consumer the value of the goods or the price of the goods as indicated in the contract, whichever is greater.

 

The itinerant merchant shall assume the costs of restitution.

 

1978, c. 9, s. 63; 1998, c. 6, s. 6.

 

64. The itinerant merchant shall assume the risk of loss or deterioration, even by superior force,

 

 (a) of the goods forming the object of the contract, until the expiry of the time provided for in section 63;

 

 (b) of the goods received in payment, as a trade-in or on account, until their restitution.

 

1978, c. 9, s. 64; 1998, c. 6, s. 7; 1999, c. 40, s. 234.

 

65. The consumer shall not cancel the contract if, as a result of an act or a fault for which he is liable, he is unable to restore the goods to the itinerant merchant in the condition in which he received them.

 

1978, c. 9, s. 65.

 

DIVISION III 
CONTRACTS OF CREDIT

 

66. This division contemplates all contracts of credit, particularly

 

 (a) contracts for the loan of money;

 

 (b) contracts extending variable credit;

 

 (c) contracts involving credit.

 

1978, c. 9, s. 66.

 

§ 1. —  General provisions

 

67. For the purposes of this division,

 

 (a) “total obligation” means the aggregate of the net capital and the credit charges;

 

 (b) “period” means a space of time of not over thirty-five days;

 

 (c) “down payment” means a sum of money, the value of a negotiable instrument payable on demand, or the agreed value of goods, given on account at the time of the contract.

 

1978, c. 9, s. 67.

 

68. The net capital is

 

 (a) in the case of a contract for the loan of money, the amount actually received by the consumer or paid into or credited to his account by the merchant;

 

 (b) in the case of a contract involving credit or a contract extending variable credit, the sum for which credit is actually extended.

 

Every component of the credit charges is excluded from this sum.

 

1978, c. 9, s. 68.

 

69. “Credit charges” means the amount the consumer must pay under the contract in addition to

 

 (a) the net capital in the case of a contract for the loan of money or a contract extending variable credit;

 

 (b) the net capital and the down payment in the case of a contract involving credit.

 

1978, c. 9, s. 69.

 

70. The credit charges shall be determined as the sum of their components, particularly the following:

 

 (a) the amount claimed as interest;

 

 (b) the premium for insurance subscribed for, except any automobile insurance premium;

 

 (c) the rebate;

 

 (d) administration charges, brokerage fees, appraiser's fees, contract fees and the cost incurred for obtaining a credit report;

 

 (e) membership or renewal fees;

 

 (f) the commission;

 

 (g) the value of the rebate or of the discount to which the consumer is entitled if he pays cash;

 

 (h) the duties chargeable, under a federal or provincial Act, on the credit.

 

1978, c. 9, s. 70.

 

71. The merchant must state the credit charges in terms of dollars and cents, and indicate that they apply

 

 (a) to the entire term of the contract in the case of a contract for the loan of money or a contract involving credit, or

 

 (b) to the period covered by the statement of account in the case of a contract extending variable credit.

 

1978, c. 9, s. 71.

 

72. The credit rate is the amount of the credit charges expressed as an annual percentage. It must be computed and disclosed in the manner prescribed by regulation.

 

In computing the credit rate in the case of a contract extending variable credit, the following components of the credit charges are not considered:

 

 (a) membership or renewal fees; and

 

 (b) the value of the rebate or of the discount to which the consumer is entitled if he pays cash.

 

1978, c. 9, s. 72.

 

73. Contracts for the loan of money and contracts involving credit may be cancelled without cost or penalty, at the discretion of the consumer, within two days following that on which each of the parties is in possession of a duplicate of the contract.

 

1978, c. 9, s. 73.

 

74. In the case of a contract for the loan of money, the consumer avails himself of the right of cancellation

 

 (a) by returning the net capital to the merchant or his representative, if he received it at the time at which each of the parties came into possession of a duplicate of the contract;

 

 (b) by either returning the net capital or sending notice in writing for that purpose to the merchant or his representative, in all other cases.

 

1978, c. 9, s. 74.

 

75. In the case of a contract involving credit, the consumer avails himself of the right of cancellation

 

 (a) by returning the goods to the merchant or his representative, if he received delivery of the goods at the time at which each of the parties came into possession of a duplicate of the contract;

 

 (b) by either returning the goods or sending notice in writing for that purpose to the merchant or his representative, in all other cases.

 

1978, c. 9, s. 75.

 

76. The contract is dissolved pleno jure from the return of the goods or of the net capital or from the sending of the notice to the merchant or his representative.

 

1978, c. 9, s. 76.

 

77. Where a contract is cancelled by virtue of section 73, the parties must as soon as possible return to each other what they have received from one another. The merchant shall assume the costs of restitution.

 

1978, c. 9, s. 77.

 

78. The merchant shall assume the risk of loss or deterioration, even by superior force, of the goods forming the object of the contract, until the expiry of the time provided for in section 73.

 

1978, c. 9, s. 78; 1999, c. 40, s. 234.

 

79. The consumer shall not cancel the contract if, as a result of an act or a fault for which he is liable, he is unable to restore the goods to the merchant in the condition in which he received them.

 

1978, c. 9, s. 79.

 

80. Contracts of credit, except contracts for the loan of money payable on demand, must be evidenced in writing.

 

1978, c. 9, s. 80.

 

81. Contracts of credit, except contracts extending variable credit, must stipulate only one credit rate.

 

1978, c. 9, s. 81.

 

82. (Repealed).

 

1978, c. 9, s. 82; 1987, c. 90, s. 2.

 

83. The merchant shall not exact, on a sum owing by the consumer, credit charges computed at a higher credit rate than the lesser of the two following rates: that computed in accordance with this Act and that stated in the contract.

 

1978, c. 9, s. 83.

 

84. The contract must provide for only one deferred payment during each period.

 

1978, c. 9, s. 84.

 

85. Notwithstanding section 84, the date on which the consumer must make his first payment may be fixed at will, but if it is fixed at over thirty-five days after that of the making of the contract, the credit charges do not accrue between the date of the contract and the commencement of the period for which that payment is stipulated.

 

1978, c. 9, s. 85.

 

86. If the merchant's principal obligation is performed more than seven days after the contract is entered into, the credit charges cannot accrue, and the merchant shall not demand any payment from the consumer, before the date of such performance.

 

1978, c. 9, s. 86.

 

87. Except for a contract extending variable credit, deferred payments must be equal, except the final payment, which may be less.

 

1978, c. 9, s. 87.

 

88. A contract to which a consumer who earns his principal income from an occupation that he carries on for not more than eight months per year is a party is exempt from the application of sections 84, 85 and 87, provided that the contract contains the following clause, drawn up in accordance with the requirements of this Act and specially signed by the consumer:

 

“(Insert here the name of the consumer and the occupation which is his principal source of income) declares that his or her principal income is seasonal.”

 

The same rule applies to a contract between a merchant and a consumer for goods necessary for the carrying on of the trade, art or profession of the consumer, provided that the contract contains the following clause, drawn up in accordance with the requirements of this Act and specially signed by the consumer:

 

“(Insert here the name and the main occupation of the consumer) declares that the goods forming the object of the contract are necessary for the carrying on of his or her trade, art or profession.”

 

The merchant is entitled to act on the strength of a declaration so drawn up, unless he knows it to be false.

 

1978, c. 9, s. 88.

 

89. A contract for the loan of money is exempt from the application of sections 84, 85 and 87, subject to the conditions prescribed by regulation, whereunder

 

 (a) the consumer's total obligation is repayable in full on a fixed date,

 

 (b) the loan is payable on demand,

 

 (c) the date of maturity is not fixed, or

 

 (d) the amount of the payments is not fixed.

 

1978, c. 9, s. 89.

 

90. In the case of a contract for the loan of money, and notwithstanding the second paragraph of section 16, no credit charge may be exacted from the consumer except on such part of the net capital as he has received from the merchant and on such part as has been paid into or credited to his account by the merchant.

 

1978, c. 9, s. 90.

 

91. The credit charges must be computed according to the actuarial method prescribed by regulation.

 

1978, c. 9, s. 91.

 

92. Credit charges, whether imposed as a penalty, arrears charge, extension charge or otherwise must be computed in the manner provided in section 91, except the components mentioned in subparagraphs a and b of the second paragraph of section 72 in the case of a contract extending variable credit.

 

1978, c. 9, s. 92.

 

93. The consumer may make full payment or partial payment of his obligation before maturity.

 

The balance owing is equal at all times to the aggregate of the net capital balance and the credit charges computed in accordance with section 91.

 

1978, c. 9, s. 93.

 

94. The merchant must, on such terms and conditions in respect of time and form as are prescribed by regulation, send to the consumer a statement of account setting out the information prescribed by regulation.

 

1978, c. 9, s. 94.

 

95. A consumer discovering a billing error in the statement of account provided to him by a merchant with whom he has entered into a contract of credit may address a writing to the merchant, informing him of

 

 (a) his identity,

 

 (b) the error discovered and the sum involved, where that is the case, and

 

 (c) his grounds for believing the error exists.

 

1978, c. 9, s. 95.

 

96. The merchant receiving the writing provided for in section 95 from a consumer shall, within sixty days from the date of mailing of that writing, advise the consumer, in writing,

 

 (a) that the billing error has been corrected, together with any credit charges erroneously billed; or

 

 (b) that he refuses to correct the statement of account, explaining to the consumer his grounds for not acceding to his request to make the correction; in this case, the merchant must, without charge, provide the consumer, on demand, with documentary proof of his grounds for refusal.

 

1978, c. 9, s. 96.

 

97. A merchant who contravenes section 96 loses his right to claim from the consumer the sum mentioned by the latter under the terms of paragraph b of section 95 and the corresponding credit charges.

 

1978, c. 9, s. 97.

 

98. If the parties to a contract of credit wish to amend certain provisions of the contract and if the credit rate or the credit charges are thereby increased, they must execute a new contract containing

 

 (a) the identification of the original contract;

 

 (b) the amount exacted from the consumer to discharge, before maturity, his obligation under the original contract;

 

 (c) the net capital, the credit charges and the credit rate; and

 

 (d) the amount of the consumer's total obligation and the terms and conditions of payment.

 

1978, c. 9, s. 98.

 

99. In the case of a contract of credit resulting from the consolidation of debts owing to the same merchant, the particulars required under paragraphs a and b of section 98 must be set out separately for each of the original contracts.

 

1978, c. 9, s. 99.

 

100. The following are exempt from the application of section 98:

 

 (a) subject to the conditions prescribed by regulation, a contract for the loan of money providing no fixed date of maturity or providing no fixed amounts of payments; and

 

 (b) the correction of a clerical error in the contract with the agreement of both parties.

 

1978, c. 9, s. 100.

 

100.1. Contracts for the loan of money and contracts involving credit which provide that the credit rate is subject to variation are, on the conditions prescribed by regulation, exempt from the application of sections 71, 81, 83, 87 and 98 and, according to the nature of the contract, from that of section 115, 134 or 150.

 

1984, c. 27, s. 84.

 

101. When the consumer discharges his obligation in full, the merchant shall give him a discharge and return to him every object or document received as an acknowledgement of or security for that obligation.

 

1978, c. 9, s. 101.

 

102. A negotiable instrument signed at the time of a contract to acknowledge deferred payments forms part of the whole contract and neither such instrument nor the contract may be assigned separately by the merchant or any subsequent assignee.

 

1978, c. 9, s. 102.

 

103. The assignee of a debt owed to a merchant under a contract to which the latter is a party cannot have more rights than the merchant and is solidarily responsible with the merchant for the performance of the merchant's obligations up to the amount of such debt at the time it is assigned to him or, if he assigns it in turn, up to the amount of the payment he has received.

 

1978, c. 9, s. 103.

 

1. FORFEITURE OF BENEFIT OF THE TERM

 

104. Every provision in a contract which has the effect of requiring the consumer in default to pay all or part of the balance of his debt before maturity is a clause of forfeiture of benefit of the term.

 

1978, c. 9, s. 104.

 

105. The merchant who avails himself of such a clause must advise the consumer thereof by means of a notice in writing drawn up in accordance with the form appearing in Schedule 2. The merchant must attach to that notice a statement of account containing the information prescribed by regulation.

 

1978, c. 9, s. 105.

 

106. The forfeiture of benefit of the term takes effect only after the expiry of 30 days following the receipt of the notice and statement of account provided for in section 105.

 

1978, c. 9, s. 106; 1999, c. 40, s. 234.

 

107. If the consumer does not remedy his default within the time provided for in section 106, the balance of his obligation becomes payable unless, upon a motion by the consumer, the court changes the terms and conditions of payment according to such conditions as it considers reasonable or authorizes the consumer to return the goods to the merchant.

 

1978, c. 9, s. 107; 1999, c. 40, s. 234.

 

108. The motion must be served before the expiry of the time, provided for in section 106.

 

1978, c. 9, s. 108; 1999, c. 40, s. 234.

 

109. The motion must be heard and decided by preference, considering, in particular, the following facts:

 

 (a) the total of amounts that the consumer must disburse under the contract;

 

 (b) the sums already paid;

 

 (c) the value of the goods at the time of the consumer's default;

 

 (d) the balance due to the merchant;

 

 (e) the consumer's ability to pay; and

 

 (f) the reason for which the consumer is in default.

 

1978, c. 9, s. 109.

 

110. The return of the goods to the merchant authorized by virtue of section 107 extinguishes the consumer's contractual obligation and the merchant is not bound to return the amount of the payments he has received.

 

1978, c. 9, s. 110.

 

2. INSURANCE

 

111. No merchant may refuse to enter into a contract of credit with a consumer on the pretext that the latter does not subscribe, through him, to an individual insurance policy or does not participate, through him, in a group insurance policy.

 

1978, c. 9, s. 111.

 

112. If subscription to an insurance policy is a condition of the making of a contract of credit, the consumer may fulfil this condition by means of an insurance policy he already holds.

 

The merchant must inform the consumer of such right in the manner prescribed by regulation.

 

1978, c. 9, s. 112.

 

113. A merchant subscribing to a group life or health insurance contract covering the consumer on his entering into a contract of credit must, in accordance with the Act respecting insurance (chapter A-32) and the regulations thereunder, provide the consumer with a membership form and a certificate of insurance.

 

1978, c. 9, s. 113.

 

114. For other insurance subscribed in respect of the making of a contract of credit, the merchant must, within thirty days, provide the consumer with a certificate of insurance and a copy of the application for insurance.

 

1978, c. 9, s. 114.

 

§ 2. —  Contracts for the loan of money

 

115. A contract for the loan of money must reproduce the particulars provided for in Schedule 3, in addition to those prescribed by regulation.

 

1978, c. 9, s. 115.

 

116. The consumer who has used the net capital of a contract for the loan of money to make full or partial payment for the purchase or the lease of goods or the provision of services may, if the money lender and the merchant who is the vendor, lessor, contractor or service provider regularly work together with a view to the granting of loans of money to consumers, plead against the money lender any ground of defence that he may urge against the merchant who is the vendor, lessor, contractor or service provider.

 

1978, c. 9, s. 116; 1999, c. 40, s. 234.

 

117. Where legal proceedings intervene between the consumer and the merchant who is the vendor, lessor, contractor or service provider, the court may, on a motion of the consumer, order the suspension of the repayment of the loan until final judgment is rendered.

 

At the time of the final judgment, the court shall indicate which party must pay the credit charges accrued during the suspension of repayment of the loan.

 

1978, c. 9, s. 117; 1999, c. 40, s. 234.

 

§ 3. —  Contracts extending variable credit

 

118. A contract extending variable credit is a contract by which credit is extended in advance by a merchant to a consumer who may avail himself of it, in whole or in part, from time to time, in accordance with the terms and conditions of the contract.

 

Contracts extending variable credit include, in particular, contracts made for the use of what are commonly called credit cards, credit accounts, budget accounts, revolving credit accounts, marginal credit and credit openings and any other contract of similar nature.

 

1978, c. 9, s. 118.

 

119. For the purposes of section 118, penalties imposed for non-payment at the expiry of the term constitute credit charges.

 

1978, c. 9, s. 119; 1999, c. 40, s. 234.

 

120. No person may issue or send a credit card to a consumer unless the consumer has applied for it in writing.

 

1978, c. 9, s. 120.

 

121. Section 120 does not apply to the renewal or replacement, on the same conditions, of a credit card which the consumer has applied for or used.

 

No person may, however, renew or replace a credit card if the consumer has notified in writing the issuer of the card of his intention to cancel such card.

 

1978, c. 9, s. 121.

 

122. No person may issue more than one credit card bearing the same number except on the written request of the consumer who is a party to the contract extending variable credit.

 

1978, c. 9, s. 122.

 

123. In case of loss or theft of a credit card, the consumer incurs no liability for a debt resulting from the use of such card by a third person after the issuer is notified of the loss or theft by telephone, telegraph, written notice or any other means.

 

1978, c. 9, s. 123.

 

124. Even where such notice is not given, the liability of the consumer whose credit card is lost or stolen is limited to the sum of $50.

 

1978, c. 9, s. 124.

 

125. Contracts extending variable credit must reproduce the particulars prescribed in Schedule 4, in addition to those prescribed by regulation.

 

1978, c. 9, s. 125.

 

126. At the end of each period, the merchant must furnish the consumer who owes him a debt with a statement of account, mailed not less than 21 days before the date on which the creditor may impose credit charges, if the consumer does not discharge his obligation in full; in the case of an advance of money, these charges may accrue from the date of that advance until the date of payment.

 

The statement of account must indicate:

 

 (a) the date of the end of the period;

 

 (b) the balance of the account at the end of the preceding period, specifying the portion of the balance which is represented by moneys advanced;

 

 (c) the date, description and value of each transaction debited to the consumer's account during the period unless the merchant appends a copy of the vouchers to the statement of account;

 

 (d) the date and amount of each payment made or sum credited during the period;

 

 (e) the credit charges required during the period;

 

 (f) the balance of the account at the end of the period;

 

 (g) the minimum payment required for such period; and

 

 (h) the time during which the consumer may discharge his obligation without being required to pay credit charges except on advances of money.

 

The consumer may require the merchant to send to him without charge a copy of the vouchers for each of the transactions debited to the consumer's account during the period.

 

1978, c. 9, s. 126; 1999, c. 40, s. 234.

 

127. Until the consumer receives a statement of account at his address, the merchant shall not exact credit charges on the unpaid balance except on advances of money.

 

Provided that the consumer has so requested expressly in writing, the address of the consumer includes, for the purposes of the first paragraph, the address where the consumer accepts the receipt of technology-based documents within the meaning of section 3 of the Act to establish a legal framework for information technology (chapter C-1.1).

 

1978, c. 9, s. 127; 2001, c. 32, s. 102.

 

128. Where the merchant has indicated to the consumer the amount up to which variable credit is extended to him, the merchant shall not increase such amount unless the consumer expressly applies therefor.

 

1978, c. 9, s. 128.

 

129. Notwithstanding section 98, the merchant may amend the contract extending variable credit to increase the amount chargeable as membership or renewal fees or the credit rate.

 

The merchant must send to the consumer, according to the time limits prescribed by regulation, a notice setting out exclusively the amended clauses, as they formerly read and as they read now, and the date of the coming into force of the increase.

 

The unilateral amendment not conformable to this section of a contract extending variable credit cannot be invoked against the consumer.

 

1978, c. 9, s. 129; 1984, c. 27, s. 85.

 

130. No contract extending variable credit may include a clause whereby the transfer of the ownership of the goods sold by a merchant to a consumer is deferred until the consumer's performance of all or part of his obligation.

 

1978, c. 9, s. 130.

 

§ 4. —  Contracts involving credit

 

131. This subdivision applies to instalment sales and to all other contracts involving credit.

 

1978, c. 9, s. 131.

 

1. INSTALMENT SALES

 

132. An instalment sale is a contract involving credit whereby a merchant selling goods to a consumer reserves ownership of the goods until the consumer's performance of all or part of his obligation.

 

1978, c. 9, s. 132; 1998, c. 5, s. 22.

 

133. The merchant shall assume the risk of loss or deterioration by superior force until the ownership of the goods is transferred to the consumer.

 

1978, c. 9, s. 133.

 

134. The contract must reproduce the particulars provided for in Schedule 5, in addition to those prescribed by regulation.

 

1978, c. 9, s. 134.

 

135. Every instalment sale not conformable to the requirements of Division III of this chapter is a sale with a term which transfers to the consumer the ownership of the goods sold.

 

1978, c. 9, s. 135.

 

136. Every provision

 

 (a) intended to prevent the consumer from moving the goods within Québec without the permission of the merchant, or

 

 (b) enabling the merchant to retake possession of the goods without the express consent of the consumer or the court,

 

is prohibited.

 

1978, c. 9, s. 136.

 

137. The balance owing by the consumer becomes exigible when the goods are sold by judicial authority or when the consumer conveys them to a third person without the merchant's consent.

 

1978, c. 9, s. 137.

 

138. If the consumer is in default to perform his obligation in accordance with the terms and conditions of the contract, the merchant may

 

 (a) exact immediate payment of the instalments due;

 

 (b) exact, in the manner provided for in sections 105 and following, immediate payment of the balance of the debt if the contract contains a clause of forfeiture of benefit of the term; or

 

 (c) retake possession of the goods sold in the manner contemplated in sections 139 and following.

 

1978, c. 9, s. 138.

 

139. Before exercising the right conferred on him by paragraph c of section 138, the merchant must send to the consumer a written notice drawn up in accordance with the form appearing in Schedule 6.

 

1978, c. 9, s. 139.

 

140. The consumer may remedy the fact that he is in default or return the goods to the merchant within 30 days following receipt of the notice provided for in section 139.

 

The right of repossession cannot be exercised until the expiry of 30 days after receipt of the notice by the consumer.

 

1978, c. 9, s. 140; 1999, c. 40, s. 234.

 

141. If, following such notice, the voluntary return or forced repossession of the goods is effected, the contractual obligation of the consumer is extinguished and the merchant is not bound to return the amount of the payments he has already received.

 

1978, c. 9, s. 141.

 

142. If, upon his default, the consumer has already paid at least one-half of the amount of the total obligation and of the down payment, the merchant cannot exercise his right of repossession unless he obtains the permission of the court.

 

1978, c. 9, s. 142.

 

143. Such permission is applied for by a motion served on the consumer which must be heard and decided by preference.

 

The court shall dispose of such motion after taking into account the facts mentioned in section 109.

 

1978, c. 9, s. 143.

 

144. If the court dismisses the motion, it shall allow the consumer to retain the goods and it may change the terms and conditions of payment of the balance according to such conditions as it deems reasonable.

 

1978, c. 9, s. 144.

 

145. A consumer who retains the goods in accordance with section 144 assumes, from the judgment, the risk of loss or deterioration, even by superior force.

 

1978, c. 9, s. 145.

 

146. The merchant who has opted for the recourse provided for in paragraph b of section 138 may, after the expiry of 30 days, avail himself of the recourse provided for in paragraph c of the same section.

 

The merchant who has opted for the recourse provided for in paragraph c of section 138 may, after the expiry of 30 days, avail himself of the recourse provided for in paragraph b of the same section.

 

The consumer may then, at his option, before the expiry of 30 days after receipt of a second notice, either remedy the default or return the goods.

 

If, following such second notice, the voluntary return or forced repossession of the goods is effected, the contractual obligation of the consumer is extinguished and the merchant is not bound to return the amount of the payments already received.

 

1978, c. 9, s. 146; 1999, c. 40, s. 234.

 

147. Instalment sales shall not involve variable credit.

 

1978, c. 9, s. 147.

 

148. The contract of instalment sale must relate only to goods sold on the same day.

 

1978, c. 9, s. 148.

 

149. The application of section 98 or 99 to an instalment sale contract does not deprive the consumer of a right granted to him by sections 132 to 148.

 

1978, c. 9, s. 149.

 

2. OTHER CONTRACTS INVOLVING CREDIT

 

150. A contract involving credit, other than a contract of sale by instalment, must reproduce the particulars provided for in Schedule 7, in addition to those prescribed by regulation.

 

1978, c. 9, s. 150.

 

DIVISION III.1 
LONG-TERM LEASE OF GOODS

 

150.1. This division applies to long-term contracts of lease of goods.

 

1991, c. 24, s. 3.

 

150.2. For the purposes of this Act, a contract of lease of goods which provides for a leasing period of four months or more is a long-term contract.

 

A contract which provides for a leasing period of less than four months is deemed to be a long-term contract where the period may be extended to a period of four months or more by way of a clause of renewal or continuation or another agreement to the same effect.

 

1991, c. 24, s. 3.

 

150.3. The leasing period begins at the time the goods are put at the disposal of the consumer.

 

1991, c. 24, s. 3.

 

§ 1. —  General provisions

 

150.4. Contracts which include a conventional option to purchase the goods leased and contracts of lease with guaranteed residual value referred to in subdivision 2 must be evidenced in writing.

 

Every other long-term contract of lease, if evidenced in writing, must comply with the rules governing the making of a contract prescribed in Chapter II of this Title in the same manner as if it were a contract which must be evidenced in writing.

 

1991, c. 24, s. 3.

 

150.5. Contracts which include a conventional option to purchase must indicate the amount the consumer must pay to acquire the goods or the manner of calculating that amount, and any other conditions of exercising the option.

 

1991, c. 24, s. 3.

 

 


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