79BMinimum Repayment Warning

#### 79B Minimum Repayment Warning (1) For subsection 34(12) of the Code, a statement of account for a credit card contract must contain the warning and details mentioned in subregulation (2). (1A) However, the warning and details are not required if: (a) the outstanding balance shown on the statement is $50 or less; or (b) there is no outstanding balance; or (c) a payment arrangement is in effect which replaces the normal monthly minimum payments. > Note: If there is an outstanding balance of $50 or less, the licensee may choose to provide the warning and details. In that case, subregulation (3) may affect the content of the warning. (1B) If the licensee provides the warning and details, they must be shown on the front page of the statement of account. (2) The warning and details must be in the following form: Minimum Repayment Warning: If you make only the minimum payment each month, you will pay more interest and it will take you longer to pay off your balance. For example: | If you make no additional charges using this card and each month you pay ... | You will pay off the Closing Balance shown on this statement in about ... | And you will end up paying an estimated total of interest charges of ... | | ---------------------------------------------------------------------------- | ------------------------------------------------------------------------- | ------------------------------------------------------------------------ | | Only the minimum payment | [period] | [total interest 1] | | [repayment 2] | 2 years | [total interest 2], a saving of [savings 2] | Having trouble making repayments? If you are having difficulty making credit card repayments, please contact us on \[phone number\]. We may be able to assist you. (3) If the time to pay off the closing balance, making only the minimum payment each month, is 2 years or less, the item for \[repayment 2\] in the table in the Minimum Payment Warning is not required. > Note: If the time to pay off the closing balance, making only the minimum payment each month, is 2 years or less, the licensee may choose to provide the item for \[repayment 2\] in the warning. (4) \[Period\] must be calculated on the assumption that: (a) the borrower pays the amount of the minimum payment mentioned in the statement of account each month; and (b) no other purchases or advances are added to the outstanding balance. (5) If more than one interest rate applies, the licensee may elect to use the purchase rate as the applicable rate to be applied to the whole of the outstanding balance. > Note: The tolerances and assumptions in section 180 of the Code will apply to the calculation. (7) In this regulation: > \[date\] means the repayment due date. > \[period\] means the time, in years and months, needed to repay the closing balance, making the minimum repayment each month until the balance is repaid. > purchase rate means the rate which applies to the purchase of goods and services under the credit card contract. > \[repayment 2\] means the monthly repayment required to pay off the closing balance in 2 years. > \[savings 2\] is the difference between \[total interest 1\] and \[total interest 2\]. > \[total interest 1\] means the total interest payable if the customer is making the minimum repayment each month until the balance is repaid. > \[total interest 2\] means the total interest that the consumer would be charged if the consumer made payments of \[repayment 2\] to pay off the closing balance in 2 years.