Consumer Protection Act Regulations
made under Section 33 of the
Consumer Protection Act
R.S.N.S. 1989, c. 92
O.I.C. 2000-464 (effective September 20, 2000), N.S. Reg. 160/2000
as amended to O.I.C. 2024-358 (effective October 1, 2024), N.S. Reg. 203/2024
Table of Contents
Please note: this table of contents is provided for convenience of reference and does not form part of the regulations.
Click here to go to the text of the regulations.
Citation
Agent of lender required to hold permit
Application
Bond
Suspension or cancellation of permit
Duties of agent
Cost of borrowing
Variable rate credit disclosure
Variable credit initial disclosure
Demand note disclosure
Change in rate statement requirements
Annual statement for variable rate loans
Bond forfeiture provisions
Advertising
Form A - Variable Rate Fixed Term Loan
Form B - Variable Rate Demand Loan (No Fixed Term)
Schedule of Costs of Borrowing
Form C - Fixed Rate Demand Loan (No Fixed Term)
Schedule of Costs of Borrowing
Form D - Business Permit Application
Citation
1 These regulations may be cited as the Consumer Protection Act Regulations.
Agent of lender required to hold permit
2 Every person who
(a) carries on the business of providing services or goods to a borrower to assist
the borrower in obtaining an extension of credit from a lender; or
(b) holds themself out to be a person as described in clause (a),
is deemed to be an agent of a lender for the purposes of the Act and these regulations and
is required to hold a valid permit under the Act.
Application
3 (1) A person may apply for a permit as a lender or an agent under the Act by submitting
to the Registrar
(a) an application in Form D;
(b) a fee of $133.35;
(c) samples of the forms of any of the following documentation that the lender
proposes to use:
(i) credit agreements,
(ii) credit application forms,
(iii) where variable credit is to be extended, the borrower’s periodic
statement,
(iv) where variable rate consumer loans are to be extended, the borrower's
annual statement,
(v) the form to be provided to the borrower containing the information
required by Section 12;
(d) such other additional information that the Registrar considers appropriate in the
circumstances.
(2) The Registrar shall advise an applicant in writing of any defects in the forms
submitted pursuant to clause (1)(c), and the applicant may amend and resubmit the
forms.
4 The terms and conditions of a permit shall include
(a) use by the applicant of only those forms approved by the Registrar;
(b) compliance by the applicant with other relevant legislation, including but not
limited to the Consumer Reporting Act; and
(c) if the applicant is a corporation, incorporation under the laws of the Province,
Canada or a province of Canada.
Bond
5 (1) The Registrar may require a lender or agent to deliver a surety bond in an amount of
$25 000.00 as a condition of a permit.
(2) A surety bond required by subsection (1) shall be a penal bond acquired through a
registered surety company approved by the Registrar.
(3) Where a bond delivered pursuant to this Section is forfeited pursuant to Section 21,
the amount due and owing as a debt to His Majesty by the person bound thereby
shall be determined as if His Majesty suffered such loss or damage as would entitle
His Majesty to the maximum amount of the liability prescribed by the bond.
Suspension or cancellation of permit
6 (1) Before the Registrar
(a) refuses to issue a permit to an applicant;
(b) cancels the permit of a lender or agent; or
(c) suspends the permit of a lender or agent for a period of more than 12 days,
the Registrar shall fix a time and place for a hearing, and not less than 15 days
before the date so fixed for the hearing, the Registrar shall give the applicant, lender
or agent written notice of the hearing.
(2) A notice of hearing under subsection (1) shall set forth the time and place fixed for
the hearing and the particulars of the complaints or the alleged violations of the Act
or these regulations in sufficient detail to enable the applicant, lender or agent to
make a full answer, reply or defence.
(3) An applicant, lender or agent may be represented by counsel at the hearing, call
evidence on behalf of the applicant, lender or agent and cross examine under oath
any witness giving evidence against the applicant, lender or agent.
(4) The Registrar shall give a written copy of the decision to the applicant, lender or
agent within 30 days of the conclusion of the hearing.
(5) A notice of hearing under subsection (1) and a written decision of the Registrar
under subsection (4) shall be
(a) given by registered mail addressed to
(i) the applicant, lender or agent at the permanent place of business stated in
the applicant's application form or on the lender's or agent's permit, or
(ii) the recognized agent of the applicant, lender or agent within the
Province; or
(b) delivered by personal service.
7 Upon receipt of the notification referred to in subsection 6(4), a lender or agent whose
permit has been suspended or cancelled shall immediately return the lender's or agent's
permit to the Registrar.
8 Despite the cancellation or suspension of a lender's or agent's permit, the lender or agent
may collect the lender's or agent's accounts receivable and for that purpose may extend the
time of payment, take and give up security and otherwise deal with borrowers and credit
transactions, the contracts for which were entered into before the cancellation or
suspension of the lender's or agent's permit, provided no new credit is extended to a
borrower.
Duties of agent
9 (1) No agent shall require or accept any payment or any security for a payment, directly
or indirectly, for whatever reason, from or on behalf of a borrower in respect of a
loan of money until the borrower has actually received the loan.
(2) Every arrangement by which an agent takes payment, consideration or a security in
contravention of subsection (1) is void.
10 Before providing services or goods to a borrower to assist the borrower in obtaining a loan
of money from a lender, an agent shall provide the borrower with a clear statement in
writing showing
(a) the name, address, and telephone number of the agent;
(b) the name and address of the borrower;
(c) the names and addresses of the lenders from whom the agent will attempt to
obtain the loan on behalf of the borrower;
(d) the amount of the loan;
(e) the date by which the loan will be made to the borrower; and
(f) the amount that the agent will charge the borrower for consulting, negotiating,
or arranging the loan expressed as a sum in dollars and cents and as a
percentage of the amount of the loan.
Cost of borrowing
11 For the purposes of clause 17(1)(h) and subclause 17(3)(a)(i) of the Act, a lender shall
disclose the percentage rate for each period during the term of credit that, when multiplied
by the principal amount of the credit outstanding at the end of the period, produces an
amount the total of which is equal to the cost of borrowing in relation to the cost expressed
as a rate per annum.
12 The annual percentage rate of interest calculated and disclosed by a lender to a borrower
shall be accurate to within one-eighth of one percent.
13 The cost of borrowing in respect of a period shall be calculated by multiplying the portion
of the annual percentage rate that the period is of 1 year by the principal amount that is
outstanding at the end of the period.
14 (1) Subject to subsection (2), where a prepayment is made, the cost of borrowing of the
amount of principal prepaid shall be calculated by multiplying the amount prepaid by
the number of days that have elapsed since the date of the last payment or the date of
the extension of credit, as the case may be, and the annual percentage rate and
dividing the figure obtained by 365.
(2) Any payment in respect of credit shall be applied first to pay the accumulated cost of
borrowing of the principal amount of the loan and thereafter to reduce the principal
amount of the loan.
(3) Where a prepayment is made, the prepayment shall be applied first to pay the
accumulated cost of borrowing of the principal amount of the credit extended and
thereafter to reduce the principal amount of the loan.
Variable rate credit disclosure
15 For the purposes of subsection 17(1) of the Act, where a lender and borrower agree that an
extension of credit is subject to variations in the annual percentage rate, the lender shall
disclose to the borrower,
(a) pursuant to clause 17(1)(h) of the Act, the percentage that the cost of
borrowing bears to the principal amount of the credit, based on the rate
prevailing on the transaction date;
(b) pursuant to clause 17(1)(g) of the Act, the cost of borrowing based on the rate
prevailing on the transaction date;
(c) that the rate is subject to variation, the basis on which it shall vary and that this
variation will affect the cost of borrowing disclosed in the statement; and
(d) on a separate statement, the information specified in Form A.
Variable credit initial disclosure
16 In addition to the requirements of subsection 17(3) of the Act, where a lender extends
variable credit to a borrower, the lender shall disclose to the borrower, before extending
the credit, a clear statement in writing setting forth
(a) the term of each period for which a statement of account is furnished;
(b) the amount in dollars and cents, of any service, transaction, or activity charge
and the manner in which it is calculated;
(c) the manner, if any, in which the borrower may discharge their obligations
without incurring any cost of borrowing;
(d) where a credit card is issued, the maximum liability of the borrower in the
event the card is lost or stolen; and
(e) the manner in which the cost of borrowing is calculated.
Demand note disclosure
17 (1) Where a lender extends credit to a person in the circumstances to which subsection
17(6) of the Act applies and the lender and borrower agree that the extension of
credit is subject to variations in the annual percentage rate, the lender shall disclose
to the borrower in a separate statement the information specified in Form B.
(2) Where a lender extends credit to a person in the circumstances to which subsection
17(6) of the Act applies and the lender and borrower agree that the extension of
credit is subject to a fixed annual percentage rate, the lender shall disclose to the
borrower in a separate statement the information specified in Form C.
Change in rate statement requirements
18 The statement referred to in subsection 17(2) of the Act shall contain the following
information:
(a) the revised rate;
(b) the effective date of the revision; and
(c) any modifications to the term or monthly payment resulting from the change in
rate.
19 [repealed]
Annual statement for variable rate loans
20 Where an extension of credit referred to in subsection 17(1) of the Act is subject to
variations in the annual percentage rate, the lender shall annually issue to the borrower a
written statement showing
(a) the number of payments made during the year;
(b) the total dollar amount of the payments made during the year;
(c) the amount of principal repaid;
(d) the amount applied to the cost of borrowing; and
(e) the amount of principal outstanding.
Bond forfeiture provisions
21 A bond delivered pursuant to these regulations shall be forfeited upon the demand of the
Registrar where
(a) the person in respect of whose conduct the bond is conditioned or any
representative, agent, officer, servant or employee of that person has been
convicted of
(i) an offence under the Act or these regulations, or
(ii) an offence under the Criminal Code (Canada) involving fraud or theft or
conspiracy to commit an offence involving fraud or theft;
(b) a judgment arising from a court proceeding in respect of a claim arising out of
a credit transaction has been given against the person in respect of whose
conduct the bond is conditioned or against any representative, agent, officer,
servant or employee of that person;
(c) the person in respect of whose conduct the bond is conditioned commits an act
of bankruptcy, whether or not proceedings have been taken under the
Bankruptcy Act (Canada); or
(d) a decision has been rendered by the Registrar stating in effect that after
consideration and investigation of a complaint, the Registrar is satisfied that
the person in respect of whose conduct the bond is conditioned or any
representative, agent, officer, servant or employee of that person
(i) has violated the Act or these regulations, or has failed to comply with
any of the terms, conditions or restrictions to which the person's permit is
subject, or is in breach of any contract to which the Act and these
regulations apply, or
(ii) has departed from Nova Scotia, or been out of Nova Scotia and remains
out of Nova Scotia, or in the case of a body corporate, that its name has
been stricken from the record of bodies corporate maintained by the
Registrar of Joint Stock Companies,
and the conviction, judgment, order or decision has become final by reason of
lapse of time or having been confirmed by the highest court to which any
appeal may be taken.
22 The Registrar may assign any bond forfeited under the Act or these regulations, or may
pay over any money recovered under it or recovered from the sale of any collateral
security, to
(a) any person, or to the Public Trustee in trust for the person, who may become
entitled to it in respect of a credit transaction with the person named in the
bond;
(b) any representative, agent, officer, servant or employee of the person entitled
pursuant to clause (a),
(c) judgment creditors of the person bonded; or
(d) any trustee, custodian, interim receiver or liquidator of the judgment creditors
referred to in clause (c),
and any assignment or payment made pursuant to this Section shall be in accordance with
and upon conditions set forth by Order of the Governor in Council.
23 A bond may be terminated by any person bound by it by giving to the Registrar and the
principal named in the bond at least 2 months notice in writing of intention to terminate,
and the bond shall be deemed to be terminated on the date stated in the notice or 2 months
after receipt by the Registrar of the notice, whichever is the latest date.
24 For the purpose of every act or omission occurring
(a) during the period in which a permit is in force; or
(b) during the period prior to the termination of the bond pursuant to these
regulations,
every bond shall continue in force and any collateral security shall remain on deposit for a
period of 3 years following the cancellation of the permit or the termination of the bond, as
the case may be.
25 Where a bond has been forfeited and the Registrar has not received notice in writing of
any claim against the proceeds of the bond or such part as remains in the Registrar's hands
within 3 years of the forfeiture, the Registrar may pay the proceeds of the bond or the
collateral security, or any part remaining, to any person who made a payment under the
bond or who deposited the collateral security, after first deducting the amount of any
expenses incurred in connection with any investigation or otherwise relating to the lender
or agent in respect of whose conduct the bond was conditioned.
26 Where a bond in place pursuant to these regulations is terminated, the permit of the lender
or agent shall automatically be cancelled and shall remain cancelled until the lender or
agent delivers to the Registrar a new bond in the amount and form required by the
Registrar.
Advertising
27 A lender may disclose cost of borrowing information in addition to the information
required by the Act and regulations if the additional information is not stated, utilized or
placed so as to contradict, obscure or distract attention from the information required to be
disclosed.
28 In a representation referred to in subsection 20(1) of the Act, where the lender offers the
option of a reduced interest rate or cash rebate, the cash rebate forms part of the cost of
borrowing and, therefore, shall be reflected in the interest rate and disclosed in accordance
with Section 17 of the Act.
29 In a representation made by a lender of the type referred to in subsection 20(1) of the Act,
(a) where the annual percentage rate contained in a print advertisement will only
be available to the borrower for part of the anticipated term of the credit
agreement, the period of time that the advertised rate will be in effect shall be
included in the advertisement in print of a size that can be easily read; and
(b) where the annual percentage rate contained in a radio or television
advertisement will only be available to the borrower for part of the anticipated
term of the credit agreement, the period of time that the advertised rate will be
in effect shall be given equal prominence in the script, in the case of radio,
with the rate referred to in the advertisement and, in the case of a television
advertisement, the information required by this Section shall remain on the
screen for a period long enough to be easily read.
30 In a representation made by a lender of the type referred to in subsection 20(2) of the Act,
the lender shall also disclose the total amount to be repaid.
31 In a representation referred to in subsection 20(2) of the Act and Section 30,
(a) the relevant terms of the credit transaction disclosed in any television
advertising shall remain on the screen for a period of time sufficient to enable
the viewer to read the information in its entirety and in a size of print that can
easily be read; and
(b) the relevant terms of the credit transaction disclosed in any print advertisement
shall be of a size that can be easily read.
Form A - Variable Rate Fixed Term Loan
Date
Customer's name
Account number
1. Present balance or amount borrowed
2. Additional funds
3. Official fees
4. Insurance (optional)
5. Principal amount of loan
(1 + 2 + 3 + 4) or
(1 + 3 + 4)
6. *Cost of borrowing
interest in dollars and cents
other fees
7. **Prevailing annual rate
8. Payment $
x
number of months
9. Total amount to be repaid
* The cost of borrowing, as stated here, is the difference between the amount to be repaid
and the principal amount and is based upon the assumption that the payments required to
be made by the borrower are made as they become due.
** The annual rate indicated above is the rate prevailing on the transaction date. The rate is
subject to change in accordance with the policy of the lender (as stated on the loan
document). Changes in the rate will result in changes in the cost of borrowing and amount
to be repaid.
Form B - Variable Rate Demand Loan (No Fixed Term)
Date
Customer's name
Account number
1. Present balance
2. Additional funds
3. Principal amount (1 + 2)
4 *Prevailing annual rate
5 **Cost of borrowing (see examples below)
Schedule of Costs of Borrowing
Principal amount Annual interest rate in dollars and cents
outstanding ($) over a 12-month period at various rates
***
15%16%17%
1000 180.00 192.00 204.00
2000 360.00 384.00 408.00
3000 540.00 576.00 612.00
4000 720.00 768.00 816.00
5000 900.00 960.00 1020.00
* The annual rate indicated above is the rate prevailing on the transaction date. The rate is
subject to change in accordance with the policy of the lender (as stated on the loan
document).
** Whereas no specific payment amount or time for repayment is specified at the time this
loan is extended, the cost of borrowing shown above has been disclosed in dollars and
cents for 1 year (for purpose of example only) at various rates.
*** The rate of interest in the centre column represents the rate prevailing on the transaction
date.
Form C - Fixed Rate Demand Loan (No Fixed Term)
Date
Customer's name
Account number
1. Present balance
2. Additional funds
3. Principal amount (1 + 2)
4. Annual rate
5. *Cost of borrowing (see examples below)
Schedule of Costs of Borrowing
Principal amount Cost of borrowing in dollars and
outstanding ($) cents over a 12-month period
1000
2000
3000
4000
5000
* Whereas no specific time for repayment and/or repayment amount is specified at the time
this loan is extended, the cost of borrowing shown has been disclosed in dollars and cents
for 1 year on various loan amounts, based on the annual rate of this credit transaction.
Form D - Business Permit Application
Business name:
(operating name)
Revenue Canada BN #: N.S. Registry of Joint Stock Companies #:
Civic address (not P.O. box):
Street # Street name Unit/Suite/Apt #
City/Town/County Province Country
Postal code
Business mailing address (if different):
Street, P.O. Box, RR #, Site #, etc.
City/Town/County Province Country
Postal code
Contact information:
Primary phone # Fax #
Please check the appropriate item(s)
Type of Permit
|
Governing Legislation
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□ Lender Permit
□ Agent of Lender Permit
|
Consumer Protection Act
|
For the following 7 questions, please respond for either the individual applicant or each partner (in the case of a
partnership applicant), or each officer/director (in the case of a Corporation applicant). Please use the
addendum if additional space is required.
1. Name and address of institution housing the applicant's trust account (if applicable)
2. Has the applicant been involved in a personal or corporate bankruptcy?
No Yes
If yes, give full particulars:
3. Does the applicant have any unpaid judgments outstanding?
No Yes
If yes, give full particulars:
4. Has the applicant previously held a permit? No Yes
If yes, give full particulars:
5. Has the applicant ever had any permit refused, suspended or revoked?
No Yes
If yes, give full particulars:
6. Has the applicant ever been convicted of an offence under the law and not been pardoned
or been disciplined by a professional/occupational organization?
No Yes
If yes, give full particulars:
7. Will the applicant be employed in any other business or profession?
No Yes
If yes, give full particulars:
8. List all corporation officers, partners of a partnership, or applicants. Include principal
contact for permit correspondence.
Last name
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First name
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Initials
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Birth date
D M Y
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Address of residence
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Position held
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Telephone
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Active?
Y N
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Last name
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First name
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Initials
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Birth date
D M Y
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Address of residence
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Position held
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Telephone
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Active?
Y N
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Last name
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First name
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Initials
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Birth date
D M Y
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Address of residence
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Position held
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Telephone
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Active?
Y N
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Last name
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First name
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Initials
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Birth date
D M Y
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Address of residence
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Position held
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Telephone
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Active?
Y N
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9. Employment history of the applicant, branch manager, each partner (in the case of a
partnership), and each officer/director (in the case of a corporation):
Name of Individual
Applicant, Partner or
Officer
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Name & Address of
Employer
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Type of Business
of Employer
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Nature of
Employment
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Period of
Employment
(give dates)
From: To:
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The undersigned hereby confirms the information presented to be correct to the best of
their knowledge, agrees to abide by the Acts and Regulations governing the permit being
applied for, and authorizes the Nova Scotia Department of Service Nova Scotia to verify
the information given or supplied as part of this application with the appropriate sources.
Authorized signature:
Signature of applicant/authorized officer Date of application
Name of applicant/authorized officer (please print) Title
Addendum: Please include additional information as required
____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
The following regulations are not yet in force and are not
included in the current consolidation: