Your Rights When Dealing With a Loan Broker
Consumer Rights
Under the Consumer Protection Act, 2002, a consumer may:
- Cancel the agreement within 10 days if the contract is worth more than $50. It’s best to cancel by registered, mail or fax to get your money back.
- Cancel within one year if the company isn’t delivering on its contract with you, or if you encounter an aspect of the deal the company was required to disclose by law, but didn’t.
Exercise caution. Under the Consumer Protection Act, 2002, loan brokers:
- May not charge a fee until the consumer receives the loan.
- Must disclose the total amount payable by the consumer to the loan broker and the terms and method of payment.
- Are required to give a full refund, within 15 days of the consumer’s demand, of any fees that may have been paid contrary to the act.
- If convicted of an offence, can be fined as individuals up to $50,000 and/or sentenced to two years less a day and, as corporations, can be fined up to $250,000.
- Must include specific information in the contract, including:
- name and business address of the loan broker and the name of the potential lender (if known)
- the amount of money to be borrowed.
