Memorandum on the Disclosure of Cost of Consumer Credit 1995

1995 Quebec QC

Civil Section Documents - Memorandum on the Disclosure of Cost of Consumer Credit
By:  Richard Bowes, Alberta Law Reform Institute

[See 1995 Proceedings at page 42]
[Voir le Compte-rendu de la réunion de 1995 à la page 55]


About this memorandum



A.Last Year's Conference

B.Developments Since Last Year's Conference

C.Issues of Process


A.The APR Approach Versus the AIR Approach

B.Restrictions on Non-Interest Charges Under AIR Approach

C.Refund of Certain Non-Interest Charges on Prepayment of Loan under CMC Approach

D.RLRF Programs

E.Timing of Disclosure

Appendix 1


This memorandum discusses certain process-related and substantive issues regarding the Uniform Law Conference of Canada ("ULCC") project on cost of credit disclosure legislation ("ccdl"). It is intended to provide a framework for the discussion of cost of credit disclosure at the 1995 Conference.

This memorandum was completed on June 13, 1995. There are many references in this memorandum to proposals contained in a Consultation Paper prepared by a working group on cost of credit disclosure. The text of the Consultation Paper had not been finalized as of the June 13 completion date of this memorandum. Therefore, statements herein about the contents of the Consultation Paper are based on a draft, rather than the final version, of the Consultation Paper. There is likely to be some variation between the final version of the Consultation Paper and the draft upon which statements in this memorandum are based. However, except where otherwise indicated, I do not anticipate major changes in the proposals referred to in this memorandum from the draft to the final version of the Consultation Paper.

This memorandum is intended to be read in conjunction with Draft 4.1 of the Cost of Credit Disclosure Act ("CCDA 4.1) and with the Consultation Paper. Copies of these two documents will be provided to delegates along with this memorandum. Several other documents referred to in this memorandum will not be included in the materials provided to delegates. Copies of these other documents are available upon request from the Alberta Law Reform Institute ("ALRI").


The following abbreviations are used in this memorandum.

1994 Memorandum

Memorandum on Cost of Credit Disclosure (ALRI, 1994) prepared for the 1994 Conference


annual interest rate


Agreement on Internal Trade, signed by all provinces and territories and the federal government in 1994


Alberta Law Reform Institute

APR Paper

Paper entitled Disclosure and Restriction of Non-Interest Charges (ALRI, 1995) prepared for the CMC working group on cost of credit disclosure


annual percentage rate _ a calculated value that measures the cost of borrowing, including both interest and non-interest charges

CCDA 3.2

CCDA 4.1

Cost of Credit Disclosure Act, Drafts 3.2 (1994) and 4.1 (1995)


cost of credit disclosure legislation _ a generic reference to such legislation


Consumer Measures Committee _ a committee of government officials set up under the AIT


Consumer Related Measures Sector, one of the areas covered by the AIT


final disclosure statement


preliminary disclosure statement

PIA 2.0

Proposed Interest Act, Draft 2.0 (1994)


rebate or low-rate financing [program] _ a program under which consumers are offered a choice between a cash rebate and low-rate financing


Uniform Law Conference of Canada


Uniform Law Section of the ULCC

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2020 Annual Meeting

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August 9 – 13, 2020