Consumer Protection Act 2002 - Creditor's Rights

When did it come into force and what did it replace?

came into force July 31 2005 and replaced 6 previous acts

what does it apply to?

all consumer transactions including the sale of goods or services (as long as vendor located in ontario at the time)

Can rights be waived or agreed to be waived under CPA?

No

How long can consumer rescind agreemnt?

within 1 year, any agreement (oral, written or implied) entered whilst vendor engaged in unfair practice may be rescinded by consumer and they are entitled to any remedy including damages

Right to seek help

not bound to clauses that make it so that you cannot go to court or seek assistance from Ministry of consumer services even if you accepted agreement

Cooling off Periods

can change your mind within 10 days of receiving agreement and get your money back if deal worth more than $50, best done by cancellation letter, no need for reason

Remedies must be timely

when you change your mind company has 15 days to return your money, business has right to take back goods

no negative option billing

if consumer is getting goods periodically and there is a material change in such goods or services the goods are deemed to be solicited from the time of material change forward unless supplier is able to establish consumer consented to change

if you’re sent good you didn’t ask for you don’t have to pay/accept

can throw it out or keep it

Misrepresentation is illegal

all charges in an agreement must be what they say they are

Sale incentives can’t be false/misleading or deceptive

the amount of the incitive cannot be false, misleading or deceptive

Consumer agreements must say everything

if entered into agreement which cooling period applies and the business failed to disclose something they were required by law to you have right to cancel within 1 year

prepaid goods or future performance agreements over $50 must have written agreement

agreement must contain complete details of the transaction and full disclosure of any credit terms

goods cannot be repossessed if you’ve paid 2/3 or more

a business cannot take them back from you except by leave of court - if you miss payment business can take you to court to get full payment and could damage credit rating

anyone who violates CPA may be subject to prosecution

liable to fine of up to $50K or imprisonment of up to 2 years less a day or both, corporation can be fined up to $250K

Amounts charged to a consumer cannot exceed estimate more than 10%

only true where the consumer obtains an estimate and did not authorize additional work or repairs, if vendor does charge more consumer allowed to purchase the goods at estimated cost

Deliveries must be on time

the CPA gives supplier 30 days from promised date after that you can cancel contract by sending cancellation letter however you lose that right if you keep the item after 30 days

Product unfit?

sue for damages

Product unsafe?

Sue in Small Claims or Superior Court

Improper elements of a contract?

sue for false, misleading or deceptive representation