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Commissioner's Decisions

Decision no. 104, posted on January 15, 2009

Decision no. 104 (HTML)

Decision no. 104 (PDF)

A bank violated subsection 12(5) of the Cost of Borrowing (Banks) Regulations in that, by not disclosing the promotional interest rate applicable to a portion of the outstanding balance in its credit card statements, the Bank did not disclose the annual interest rate that applied on each day of the statement period as required.

Note: This decision was made in June 2008. The Bank did not bring itself into compliance within the one year provided by the Decision. A Notice of Violation was issued in June, 2009. It proposed administrative monetary penalties of $200,000 for violation of subsection 12(5) of the Cost of Borrowing (Banks) Regulations and $50,000 for violation of subsection 6(4) of the same Regulations. The Bank paid the proposed administrative monetary penalties and was deemed to have committed the violations.

Note: In July, 2009, the Bank agreed to enter into a compliance agreement under section 661 of the Bank Act to bring itself into compliance by January 31, 2010. The Bank failed to meet the deadline. A Notice of Violation was issued in February, 2010. It proposed an administrative monetary penalty of $200,000 for violation of the compliance agreement. The Bank paid the proposed administrative penalty and was deemed to have committed the violation.

• Cost of Borrowing (Banks) Regulations, subsections 6(4) and 12(5)

Date Modified:

2013-01-25