Bill 88 2015

An Act to amend the Consumer Protection Act, 2002 with respect to money transfers

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

   1.  Section 2 of the Consumer Protection Act, 2002 is amended by adding the following subsection:

Part VII.1

   (2.1)  Despite clause (2) (c), Part VII.1 applies in respect of financial products or services regulated under the Insurance Act, the Credit Unions and Caisses Populaires Act, 1994, the Loan and Trust Corporations Act or the Mortgage Brokerages, Lenders and Administrators Act, 2006.

   2.  The Act is amended by adding the following Part:

Part Vii.1
Money Transfers

Definition

   85.1  In this Part,

"money transferor" means a supplier who transfers money for or on behalf of consumers through any person or entity and by any means, including an electronic funds transfer network or an alternative remittance system.

Non-application of Part

   85.2  This Part and the regulations made in relation to it do not apply in respect of the transfer of money by a person or entity who is governed by the Bank Act (Canada), the Cooperative Credit Associations Act (Canada), the Canadian Payments Act (Canada) or the Payment Clearing and Settlement Act (Canada) or by a prescribed person or entity.

Limit on fees for transferring money

   85.3  No money transferor shall charge a consumer a fee for the transfer of money that is more than 5 per cent of the amount that is transferred.

Disclosure

   85.4  No money transferor shall transfer money for or on behalf of a consumer unless the money transferor has disclosed to the consumer, in accordance with the prescribed rules,

  (a)  the total fees payable for the transfer, including any fees payable in respect of currency exchange;

  (b)  the exchange rate, if any; and

   (c)  any other prescribed information.

Representations

   85.5  Any representations made by or on behalf of a money transferor with respect to the fees payable for the transfer of money shall include reference, in accordance with the prescribed rules, to the limit described in section 85.3.

   3.  Clause 116 (1) (b) of the Act is amended by adding the following subclause:

     (vi.1)  in respect of Part VII.1, Money Transfers, sections 85.3, 85.4 and 85.5,

   4.  Section 123 of the Act is amended by adding the following subsection:

Lieutenant Governor in Council regulations: Part VII.1

   (8.1)  The Lieutenant Governor in Council may make regulations,

  (a)  prescribing a person or entity for the purpose of section 85.2;

  (b)  prescribing rules in respect of disclosure for the purpose of section 85.4;

   (c)  prescribing information for the purpose of clause 85.4 (c);

  (d)  prescribing rules in respect of representations for the purpose of section 85.5.

Commencement

   5.  This Act comes into force on the day that is six months after the day it receives Royal Assent.

Short title

   6.  The short title of this Act is the Consumer Protection Amendment Act (Money Transfers), 2015.

EXPLANATORY NOTE

The Bill amends the Consumer Protection Act, 2002 to limit the fees that a money transferor may charge to a consumer and to require that money transferors disclose information regarding the fees to consumers.