The information concerning your credit card or line of credit must appear in a written contract.
Information text box
An information text box must appear at the top of the contract. The text box may also be given to you in a separate document, before or at the same time as the contract.
Depending on the contract, the text box must be one of the following:
- Information text box – Credit Card Contract;
- Information text box – Variable Rate Credit Card Contract.
The contract must indicate
- the date on which the contract was entered into;
- the place where the contract was entered into, if it was entered into in the presence of the merchant and the consumer;
- the merchant's name and address;
- the merchant's email address, if applicable;
- the merchant's permit number, in the case of a high-cost credit contract;
- your name and address;
- the credit limit, if there is one;
- membership, renewal or lost or stolen card replacement fees;
- the length of each period for which a statement of account is provided;
- the minimum payment required for each period, or how to calculate this payment;
- the grace period given to reimburse your account balance without having to pay credit charges;
- the annual credit rate, expressed as an annual percentage that represents the credit charges;
- if the credit rate is variable, the reference index used to determine the credit rate, the credit rate change mechanics and how a change in the credit rate will affect the terms and conditions of payment;
- the nature of the credit charges and how they are determined;
- examples of credit charges presented in a table;
- in the case of a credit card contract, your liability limits in the circumstances described in section 123 of the Consumer Protection Act (unauthorized use of the card) and the circumstances in which you may be held liable for the losses incurred by the issuer;
- the existence and subject matter of any security given to guarantee the performance of your obligations;
- the nature of any optional contracts, the charge for such contracts or how it is determined, and a statement that you have a right of resiliation with respect to such contracts;
- If the merchant requires that you have insurance, information to the effect that you may provide insurance you already hold or choose other insurance;
- a telephone number you can use, at no charge, to obtain information about the contract, in the language of your contract . If collect calls are accepted, a clear statement to that effect must also be provided.
High-cost credit contracts
If you are offered a contract with an annual credit rate that exceeds the Bank of Canada's Bank Rate by 22 percentage points, the merchant may have additional obligations. Refer to the section on high-cost credit to find out more.
Signature and distribution of the contract
In the case of a line of credit, the financial institution must sign the contract first, then let you read it, and then have you sign it. You are bound by your obligations from the moment the merchant gives you a copy of the contract.
In the case of a credit card, the act of giving you a card is deemed equivalent to the financial institution's signature. The use of the card constitutes your signature.
Updated version of the contract
If the merchant or financial institution has a website, they must publish the most recent version of any contract related to the use of any credit cards they make available to consumers.
Last update : October 11, 2023
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The information contained on this page is presented in simple terms to make it easier to understand. It does not replace the texts of the laws and regulations.