Information box examples for the Financial Consumer Protection Framework Regulations, the Cost of Borrowing Regulations and the Prepaid Payment Products Regulations

Updated: June 10, 2024 (previous version CG-4 and previous version CG-6)

Original publication date: October 2009 (CG-4) and September 2011 (CG-6)

Effective date: June10, 2024

I. Issue

The purpose of this bulletin is to provide federally regulated financial institutions (FRFI)^{Footnote 1}  with examples of the information boxes required by the Bank Act, the Financial Consumer Protection Framework Regulations (FCPFR), the Cost of Borrowing (Trust and Loan Companies) Regulations, the Cost of Borrowing (Canadian Insurance Companies) Regulations, the Cost of Borrowing (Foreign Insurance Companies) Regulations (collectively, the Cost of Borrowing Regulations or CoBR) and the Prepaid Payment Products Regulations (PPPR).

II. Context

Effective disclosure supports consumers making informed decisions.

Information boxes improve clarity of credit applications and contracts and allow consumers to easily reference relevant information such as cost of borrowing, grace periods and fees.

Information boxes provide important information, consolidated in one location, to help consumers better understand their options when applying for credit cards, entering into credit agreements for credit cards, fixed and/or variable rate loans and lines of credit or acquiring prepaid payment products.

III. FCAC Interpretation

FRFIs must ensure they meet the regulatory requirements in the way information boxes are presented and the information they contain. The information box examples below are generic.

Information box examples:

Credit agreement for a fixed interest loan for a fixed amount (Mortgage) (Annex I)

Credit Agreement for a Fixed Interest Loan for a Fixed Amount (Mortgage) – Information box referred to in section 38 of the FCPFR and subsections 6(2.1) and (2.2) and Schedule 1 of the Cost of Borrowing (Trust and Loan Companies) Regulations, the Cost of Borrowing (Canadian Insurance Companies) Regulations and the Cost of Borrowing (Foreign Insurance Companies) Regulations.

Credit agreement for a variable interest loan for a fixed amount (Mortgage) (Annex II)

Credit Agreement for a Variable Interest Loan for a Fixed Amount (Mortgage) – Information box referred to in section 39 of the FCPFR and subsections 6(2.1) and (2.2) and Schedule 2 of the Cost of Borrowing (Trust and Loan Companies) Regulations, the Cost of Borrowing (Canadian Insurance Companies) Regulations and the Cost of Borrowing (Foreign Insurance Companies) Regulations.

Credit agreement for a fixed interest loan for a fixed amount (Personal loan) (Annex III)

Credit Agreement for a Fixed Interest Loan for a Fixed Amount (Personal loan) – Information box referred to in section 38 of the FCPFR and subsections 6(2.1) and (2.2) and Schedule 1 of the Cost of Borrowing (Trust and Loan Companies) Regulations, the Cost of Borrowing (Canadian Insurance Companies) Regulations and the Cost of Borrowing (Foreign Insurance Companies) Regulations.

Credit agreement for a line of credit (Annex IV)

Credit Agreement for a Line of Credit – Information box referred to in section 52 of the FCPFR and subsections 6(2.1) and (2.2) and Schedule 3 of the Cost of Borrowing (Trust and Loan Companies) Regulations, the Cost of Borrowing (Canadian Insurance Companies) Regulations and the Cost of Borrowing (Foreign Insurance Companies) Regulations.

Application form for a credit card (Annex V)

Application Form for a Credit Card – Information box referred to in section 59 of the FCPFR and subsections 6(2.1) and (2.2) and Schedule 4 of the Cost of Borrowing (Trust and Loan Companies) Regulations, the Cost of Borrowing (Canadian Insurance Companies) Regulations and the Cost of Borrowing (Foreign Insurance Companies) Regulations.

Credit agreement for a credit card (Annex VI)

Credit Agreement for a Credit Card – Information box referred to in section 60 of the FCPFR and subsections 6(2.1) and (2.2) and Schedule 5 of the Cost of Borrowing (Trust and Loan Companies) Regulations, the Cost of Borrowing (Canadian Insurance Companies) Regulations and the Cost of Borrowing (Foreign Insurance Companies) Regulations.

Prepaid Payment Products (Annex VII)

Prepaid Payment Products – Information box referred to in section 72 of the FCPFR and paragraphs 4(1)(d) and 4(2) of the Prepaid Payment Products Regulations.

IV. Legislative and regulatory references

For Banks (including authorized foreign banks and federal credit unions), subsection 627.57(1) of the Bank Act provides that, if an institution is required under Division 3 of Part XII.2 of the Bank Act to disclose information in an application form or before entering into an agreement in respect of a product or service, it shall, at the time of that disclosure, disclose the information that is prescribed by presenting it prominently in a single prominently displayed information box.

The content of the information box is outlined in sections 38; 39; 59; 60; and 72 of the Financial Consumer Protection Framework Regulations.

For federal trust and loan companies, federal insurance companies and foreign insurance companies, subsections 6(2.1) and (2.2) of the Cost of Borrowing (Trust and Loan Companies) Regulations, of the Cost of Borrowing (Canadian Insurance Companies) Regulations and of the Cost of Borrowing (Foreign Insurance Companies) Regulations provide that institutions must present the applicable information box, as set out in one of Schedules 1 to 5 of each of the Regulations, containing the information referred to in the correspondent Schedule. Furthermore, subsections 4(1)(d) and 4(2) of the Prepaid Payment Products Regulations establish the information box requirement related to prepaid payment products.

Sections 998 of the Bank Act; 1040 of the Insurance Companies Act; and 539.07 of the Trust and Loan Companies Act indicate the conditions under which the provision of an electronic document satisfies a requirement under those acts or their respective regulations to provide information. Accordingly, FRFIs must meet these conditions and the legislative and regulatory information box requirements if they choose to provide information boxes in electronic form.

V. Concordance

VI. Miscellaneous

Questions relating to this Bulletin should be sent

1. by email to compliance@fcac-acfc.gc.ca or
2. by mail to addressed to:

Financial Consumer Agency of Canada
Attention: Deputy Commissioner, Supervision and Enforcement Branch
427 Laurier Ave West, 5th Floor
Ottawa, ON K1R 1B9

Annex I

Credit agreement for a fixed interest loan for a fixed amount (Mortgage)

Annex II

Credit agreement for a variable interest loan for a fixed amount (Mortgage)

Annex III

Credit agreement for a fixed interest loan for a fixed amount (Personal loan)

Annex IV

Credit agreement for a line of credit

Annex V

Application form for a credit card

Annex VI

Credit agreement for a credit card

Annex VII

Prepaid payment products