Bank Act (S.C. 1991, c. 46)

Marginal note:Cancellation periods — products or services

• 627.1 (1) Subject to subsection (1.1), if an institution enters into an agreement with a person in respect of a product or service in Canada — other than a prescribed product or service or a product or service referred to in section 627.11 — to be provided on an ongoing basis, the institution shall allow the person to cancel the agreement,

  • (a) if it was entered into by mail or orally by telephone, within the prescribed period or, if there is no prescribed period, until the end of the 14th business day after the day on which the agreement is entered into; or

  • (b) if it was entered into in any other manner, within the prescribed period or, if there is no prescribed period, until the end of the third business day after the day on which the agreement is entered into.

• Marginal note:Exception

  (1.1) Subsection (1) does not apply to a body corporate, trust or partnership if it is a business that is not an eligible enterprise.

• Marginal note:Obligations of institution

  (2) If a person notifies an institution that they are cancelling an agreement within the applicable period referred to in subsection (1), the institution shall

  • (a) in writing and without delay, acknowledge receipt of the person’s notice of cancellation and confirm what it intends to recover under subsection (3); and

  • (b) without delay, refund to the person any amount that it received in respect of the provision of the product or service.

• Marginal note:Limited recovery

  (3) In the event of a cancellation within the applicable period referred to in subsection (1), an institution shall waive any cancellation charge and may recover only

  • (a) any amounts related to the person’s use of the product or service prior to the cancellation;

  • (b) any expense that the institution has reasonably incurred in providing the product or service; and

  • (c) any prescribed amount.