The information about your loan must appear in a written contract.

Information boxes

An information box must appear at the very beginning of a contract for the loan of money or be given to you with the contract in a separate document. The information box is one of the following:

• contract for the loan of money where the net capital is paid in one instalment;
• contract for the loan of money at a variable rate where the net capital is paid in one instalment;
• contract for the loan of money where the net capital is paid in a number of advance payments;
• contrat contract for the loan of money at a variable rate where the net capital is paid in a number of advance payments.

See Regulation respecting the application of the Consumer Protection Act, s. 61.0.8 for more information.

Mandatory information

The contract must comply with the standard model provided in the Regulation respecting the application of the Consumer Protection Act (s.61.0.7). It must indicate:

• the date on which the contract is entered into;
• the place where the contract is entered into;
• the name and address of the lender;
• the lender’s permit number, where applicable;
• your name and address;
• the amount of money being borrowed;
• the total credit charges and the details of the portion that represents:
  • interest,
  • other fees, if applicable;
• the credit rate, and specify whether it is variable;
• the term of the contract;
• your total obligation, namely the amount borrowed and the total credit charges;
• the date on which credit charges begin to accrue;
• the date and amount of the payments required to reimburse the loan in full, as well as the number of such payments;
• where applicable, information on any optional contracts: their nature, charges and your right to cancel;
• information to the effect that you may reimburse your loan in part or in full before maturity, without any fees or penalties;
• where applicable, information on the existence and subject matter of any security given to guarantee the performance of your obligations (such as an pawned item);
• where the lender requires that you have insurance, information to the effect that you may provide insurance you already hold or choose another one.

Other information is required where the contract involves a variable credit rate.

Mandatory clause

The contract must also include a clause indicating the possibility of:

• cancelling the contract on your own initiative within 2 days following that on which both parties took possession of a duplicate of the contract. This means that both you and the lender must find yourselves back in the situation you were in before the contract was entered into. Each party must therefore return what they have received to the other party;
• reimbursing the loan in full before maturity;
• requesting a statement of account.

High-cost credit contracts

If the contract for the loan you are offered has an annual credit rate that exceeds the Bank of Canada's Bank Rate by 22 percentage points, the lender may have additional obligations. Refer to the section on high-cost credit to find out more.

Signatures

The money lender must sign the contract first, then allow you to read it, have you sign it, and give you a duplicate.

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