Credit charges and rates
Credit charges
Credit charges are all of the amounts that the consumer will have to pay back, in addition to the capital borrowed, at the end of the contract. They include interest, insurance except for car insurance premiums, rebates, various administrative expenses (broker, specialist, etc.), membership and renewal fees, commission, the value of the reduction or discount granted and fees payable on credit under federal or provincial law.
Credit rate
The credit rate is the indication, as a percentage, of credit charges applicable to a credit contract. The contract must contain only one credit rate, except for contracts extending variable credit (open account, credit card, etc.), whose rate can vary depending on the amount you owe, e.g. a rate of 19% can be applied to a balance of $500 while another rate, i.e. 14%, could be applied to the rest.