Lines of credit: know your rights

Your express consent for a line of credit

Federally regulated financial institutions can only provide you with a line of credit if they have your express consent. If you give verbal consent, they must provide you with confirmation of your consent, in writing, without delay.

Banks must also obtain your express consent before increasing the limit on your line of credit.

Learn more about giving express consent for financial products and services.

Your right to information about lines of credit

Federally regulated financial institutions must provide you with information about your line of credit. The information must be disclosed in a manner, and using language, that is clear, simple and not misleading.

Before you sign a credit agreement, take the time to read and understand the terms and conditions. Ask questions if anything is unclear or if you’re not sure about what you’re signing.

Information when you get your line of credit

Federally regulated financial institutions that issue a line of credit must disclose certain information.

They must provide this information in a disclosure statement that is:

They must also provide certain information in an information box.

It can be at the beginning of your credit agreement or in a separate document you receive with it. If you’re dealing with a bank, they must present it in a single prominently displayed information box.

This includes information such as:

See an example of an information box in a line of credit agreement.

Your credit agreement or disclosure statement must also include:

Your federally regulated financial institution may not know the initial credit limit when they provide the initial disclosure statement. In that case, they must disclose it in:

Information in your line of credit statement

Federally regulated financial institutions must give you, at least once a month, another disclosure statement that includes:


You might not get the additional disclosure statement if there haven’t been any advances or payments, and:

You might only get the additional statement every 3 months if:

Display of information about credit agreements

Banks must disclose required information about credit agreements by:

Information when advertising lines of credit

Federally regulated financial institutions may promote a line of credit by advertising:

If they do, they must disclose the annual interest rate and all non-interest charges and present it at least as prominently as the other information.

Any advertisement in Canada that a bank makes must be accurate, clear and not misleading.

Learn more about lines of credit.

Your right to receive electronic alerts

Your bank must send you an electronic alert in 2 situations:

Your bank will automatically set the electronic alerts to $100. You may ask your bank to set them to a different amount.

The alerts must tell you:

Your bank will send these alerts to you automatically. You don’t have to sign up, but you may opt out at any time by informing your bank in writing. This could be done by email.

The alerts don’t apply to accounts opened for business purposes.

Your bank will send the alerts via push notifications, text messages or emails. It will depend on your contact information with the bank, the preferences you’ve set-up and the systems your bank has in place.

You won’t receive the new alerts if you didn’t provide your bank with the necessary contact information. For example, you didn’t provide your mobile phone number or email address.

For more information on electronic alerts, contact your bank or visit their website.

Other financial institutions may choose to offer electronic alerts. Contact yours to find out if they offer them.

When these rights apply to you

These rights apply when you’re dealing with a federally regulated financial institution like a bank or federal credit union.

Find out if your financial institution is federally regulated.

Learn more about how your banking rights are protected.

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