Loan Pages in Quebec: What the Consumer Protection Act Requires

A loan page is an advertisement under Quebec's Consumer Protection Act (CPA). Every rate, every payment example and every promise on it is regulated. Here are the rules that bear directly on the text of a web page, taken from the Act, its regulation and the Office de la protection du consommateur (OPC).

Key Takeaways

• A money lender must hold an OPC permit
• A displayed rate must come with the credit rate calculated under the Act, with equal emphasis
• A page that mentions one loan term (fees, payments, duration) must mention all the prescribed particulars
• Some promises are prohibited: improving one's financial situation, solving debt problems, improving one's credit report
• The advertiser, who prepares or broadcasts the message, is also covered by the general prohibitions

This article summarizes public rules to help you prepare your pages; it is not legal advice.

1. The Permit Comes First

Every merchant who makes contracts of loan of money governed by the CPA must hold a permit, subject to the exceptions prescribed by regulation (CPA, s. 321). So must a merchant who makes high-cost credit contracts. Before building the page, check that the business doing the lending is the one holding the permit.

2. The Rate: Never Alone

In an advertisement concerning credit, the CPA prohibits (s. 246):

• referring to a credit rate without disclosing that rate;
• disclosing a rate relating to credit unless the credit rate, calculated under the Act, is also disclosed with equal emphasis.

According to the OPC, this calculated rate expresses all credit charges (interest, administration fees, brokerage fees and so on) as an annual percentage: it is the true cost of credit (OPC, in French).

In practice, a "Rates from…" banner or a rate comparison calls for the credit rate, with equal emphasis. And a promotion such as "no fees for 30 days" must clearly specify the credit rate that will apply at the end of that period if the net capital has not been repaid in full (s. 247.2).

3. Loan Terms: All or Nothing

Advertising regarding the terms and conditions of credit must include the particulars prescribed by regulation (s. 247). For a contract for the loan of money, advertising that includes one of the following particulars must include all of them (Regulation respecting the application of the CPA, s. 84):

1. a component of the credit charges;
2. the total credit charges;
3. the number and duration of the payment periods;
4. the amount of each deferred payment;
5. the total obligation of the consumer;
6. a reference table of credit charges payable.

A page that says "Repay in 6 instalments" or "$25 administration fee" therefore triggers all six. The clearest way to present them is often one complete example: an amount borrowed, its charges, its payments and the total obligation, calculated from your actual contract.

4. Prohibited Promises

Three representations are targeted directly by the CPA:

• Financial situation: no one may, in any advertisement, falsely or misleadingly represent to consumers that credit may improve their financial situation or solve their debt problems (s. 244.1).
• Credit report: no merchant may falsely or misleadingly represent to consumers that credit reports prepared about them will be improved (s. 244.2).
• Debt reduction: no merchant may represent to consumers that their obligations with regard to a creditor will be reduced, unless that creditor expressly consents (s. 244.3).

Phrases such as "Clear your debts" or "Rebuild your credit with this loan" therefore deserve a careful second look, with your legal adviser if needed.

5. The Loan, Not What It Buys

In an advertisement concerning credit, no one may urge consumers to obtain goods or services on credit, or illustrate goods or services (s. 245). A loan page talks about the loan: a photo of a new car or a vacation, with "Treat yourself today", does not belong there.

6. The General Rules Apply Too

No merchant, manufacturer or advertiser may make false or misleading representations to a consumer (s. 219), or fail to mention an important fact in any representation made to a consumer (s. 228).

The "advertiser" is the person who prepares, publishes or broadcasts an advertisement, or causes it to be prepared, published or broadcast (s. 1 (m)). The agency that writes and publishes your page fits that definition: it has every reason to make sure each statement is accurate.

A Checklist Before Going Live

• The lender shown holds the required permit.
• Every rate comes with the credit rate, with equal emphasis.
• Any mention of fees, payments or duration comes with the other five particulars of section 84, with figures taken from the actual contract.
• No promise about financial situation, credit report or debt reduction.
• No image or incitement tied to a purchase.
• The same figures everywhere: page, ads, form and contract.

How We Work

We build and host lender websites: application forms connected to your systems, multi-brand sites, and loan pages prepared with the CPA, the lender permit, the criminal interest rate and Google's personal loan rules in mind. Your terms, your cost-of-credit disclosures and your legal text remain yours: we integrate them as you or your legal adviser provide them.

See our Financial services page.