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Difference between revisions of "Direct Sales, Future Performance, and Time Share Contracts (11:V)"
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Direct Sales, Future Performance, and Time Share Contracts (11:V) (view source)
Revision as of 18:09, 16 June 2016
, 18:09, 16 June 2016→C. Travel or Vacation Clubs, “Book-of-the-Month”, and Record Clubs (Continuing Services Contracts)
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Section 54 sets out the required form and procedure for giving notice. (See [[{{PAGENAME}}#1. Right of Cancellation - Direct Sales | Section V.A.1]]) | Section 54 sets out the required form and procedure for giving notice. (See [[{{PAGENAME}}#1. Right of Cancellation - Direct Sales | Section V.A.1]]) | ||
next 11- | == D. Unsolicited Goods or Services == | ||
Under s 11, unsolicited goods or services means goods or services that are supplied to a consumer who did not request them, other than: | |||
*(a) goods or services supplied to a consumer who knew or ought to have known they were intended for delivery to another person; | |||
*(b) goods or services for which the supplier does not require payment; or | |||
*(c) a prescribed supply of goods or services. | |||
Under s 12, a recipient of unsolicited goods has no legal obligation to the sender unless the recipient gives notice of an intention to accept them, or unless the recipient knew or ought to have known that the goods were intended for delivery to another person. | |||
If however, a consumer does pay for unsolicited goods or services, under s 14 the consumer may give to the supplier a demand, in writing, for a refund from the supplier within 2 years after the consumer first received the goods or services if the consumer did not expressly acknowledge to the supplier in writing his or her intention to accept the goods or services. | |||
'''NOTE:''' If a consumer is being supplied with goods or services on a continuing basis and there is a material change in the goods or services or in the supply of them, the goods or services are deemed to be unsolicited goods or services from the time of the material change unless the supplier is able to establish that the consumer consented to the material change. | |||
== E. Distance Sales == | |||
Under s 17, a “distance sale” means “a contract for the supply of goods or services between a supplier and a consumer that is not entered into in person and, with respect to goods, for which the consumer does not have the opportunity to inspect the goods that are the subject of the contract before the contract is entered into”. This definition encompasses all forms of commerce where the parties are not face-to-face, such as catalogue sales, sales over the internet, or sales over the telephone. Section 48 stipulates that a supplier must give a consumer a copy of the contract within 15 days after the contract is entered into, and also sets out a list of requirements for distance sales contracts. | |||
Section 49 provides consumer rights concerning cancellation of distance sales contracts. These provisions are an attempt to deal with sales done over the internet. Note that there are different time restrictions on cancellation rights on distance sales depending on which provisions the supplier does not comply with. Once a consumer gives notice to the supplier of the cancellation, the supplier has 15 days to refund to the customer all monies paid in respect of the contract and any related consumer transactions. If the supplier fails to do this, the consumer may have recourse under s 52 if the consumer charged to a credit card all or any part of the total price under the contract. | |||
== F. Credit Transactions == | |||
Part 5 of the ''BPCPA'' deals with the disclosure of the cost of consumer credit. | |||
The Acts set out disclosure requirements, as well as advertising requirements for both fixed and open credit. The basic distinction between fixed and open credit is that open credit involves multiple advances and does not establish the total amount advanced under the agreement. However, open credit can be subject to an overall credit limit. Fixed credit is a credit arrangement that is normally based on a fixed initial advance and a predetermined payment schedule. Under s 105 of the ''BPCPA'', the creditor is obliged to compensate borrowers for contraventions of the Act. | |||
The rules for credit transactions under the ''BPCPA'' are: | |||
*Under s 66, lenders are required to furnish debtors with a written statement of disclosure. Consult ss 66-93 for the specific requirements pertaining to your client’s situation. | |||
*Under ss 59 to 64, certain requirements flow from the advertising of certain aspects of credit, such as interest-free periods, interest rates, and cost of credit. | |||
*Under Division 4 of Part 5, a borrower has certain rights, such as being able to choose an insurer and to cancel optional services. | |||
*Under s 99, where a credit card is lost or stolen, the holder is not liable for any charges incurred after notice in person or by registered mail has been given to the issuer of the card. In the case of purchases made before notice is given, an individual is only liable for $50 or up to the credit limit remaining on the card, whichever is less. This protection does not extend to unauthorized use of a card to get cash from an ATM where the cardholder left his or her PIN number in the wallet with the card, and it is stolen (see ''Plater v. Bank of Montreal'' (1988), 22 BCLR (2d) 308 (Co Ct.)). | |||
=== 1. Notice Required for Increased Interest Rates === | |||
Under s 98, there is a notice requirement for increasing credit card interest rates. | |||
=== 2. Unsolicited Credit Cards === | |||
Section 96 provides that a credit card issuer must not issue a credit card to an individual that has not applied for one. This does not affect the ability of a credit card issuer to provide a renewal or replacement card that has been applied for. Prepaid Purchase Cards (Gift Certificates and Gift Cards) | |||
Sections 56.1-56.5 regulate the terms of prepaid purchase cards. A prepaid purchase card is a card, written certificate or other voucher with a monetary value that is issued or sold to a person in exchange for the future supply of goods or services. These include gift cards or gift certificates. Section 56.2 prevents any cards from being issued with an expiry date. Prepaid Purchase Cards Regulation, BC Reg. 292/2008 contains exemptions from the expiry date prohibition. These include cards issued for a specific good or service, cards issued for a charitable purpose, and cards issued to a person who provides nothing of value in exchange. | |||
== G. Regulation of Payday Lenders and Criminal Rate of Interest == | |||
Section 347 of the ''Criminal Code'' prohibits loans that charge a criminal rate of interest, which is defined as an annual rate that '''exceeds 60 percent'''. | |||
Loans offered by payday lenders, if calculated according to the ''Criminal Code'', may charge rates that exceed the amount permitted under the definition. In 2006, the federal government amended the ''Criminal Code'' to exempt payday loan agreements from the criminal interest rate provision. | |||
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