Contracts must be prominent, clear and comprehensible
Vague language is discouraged in contracts. All required information must be clear, prominent and easy to understand. If there is a dispute over unclear language, the law requires that it be interpreted in favour of the consumer.

A cooling-off period
Let’s say you make a purchase or sign a contract in your home and then change your mind. If the deal is worth more than $50, you have the right to cancel within 10 days. It’s best to cancel by registered mail or fax, to get your money back.

Pre-paid goods or services
Written contracts are required for goods or services worth more than $50 where some part of the contract occurs in the future (e.g. a gym membership). The contract must contain complete details of the transaction and full disclosure of any credit terms.

Full disclosure of credit terms
Anyone providing goods or services on credit must give the consumer a written statement showing all financing charges and the annual percentage rate of the credit transaction. It must also explain how any extra charges would be calculated if you failed to make the payments.

Referral selling
A salesperson can offer you an incentive to help find other buyers, but the description of the incentive cannot be false, misleading or deceptive.

Repossession
A seller can’t take back goods you’ve bought but not paid for fully, as long as you have paid two-thirds or more of the cost, except by court order. But remember, if you miss a payment, the seller can take you to court to get full payment, which could hurt your credit rating.

Unsolicited goods
If someone sends you goods you didn’t ask for, you don’t have to accept or pay for them. In fact, you can use them or throw them out. You’re not responsible for an unsolicited credit card either – unless you buy something with it.

The Consumer Protection Act, 2002 is serious about looking after your interests. Individuals violating certain sections of the act are liable to a fine of up to $50,000 or imprisonment of up to two years less one day. A corporation can be fined up to $250,000.

Consumer agreements must disclose all details
If a company isn’t delivering on its contract with you, or if you encounter an aspect of the deal the company was required to disclose by law, but didn’t, you have the right to cancel within one year.

Deliveries must be made on time
If a delivery doesn’t arrive within 30 days of the promised date, you can cancel the contract by sending a cancellation letter. But you lose the right to cancel the agreement if you accept delivery after the 30 days.

Remedies must be timely
When you take advantage of your 10-day cooling-off period and notify the company (preferably in writing) that you have changed your mind, the company has 15 days to return your money. The business has the right to take back the goods provided under the agreement by either picking them up or paying for the cost of sending them back.

Misrepresentation is illegal
All charges in a contract must be what they say they are. For example, a business may not add a $20 surcharge for a “tax” that is not really for tax. Make sure you understand what each charge is for and that it’s valid.

Part III of the Consumer Protection Act, 2002 — Unfair Practices

This is a wide-ranging part of the law that covers consumer transactions for many goods and services. Part III of the act works in two ways.

First, it defines unfair business practices, with special attention to false or misleading representations and sales pitches. Second, it provides consumers who have been treated unfairly with a legal basis for getting their money back. If you feel you’ve experienced an unfair business practice, there are three things you can do:

1. You can ask the seller to rescind the agreement. You have one year to do this, preferably by registered mail or fax. For best results, your letter should name the paragraph(s) of Part III of the act that you’re using as the basis of your complaint. Click here for help writing a letter of rescission. 
2. If the seller refuses your request and more than 30 days have passed since your request, you can sue in court. If the sum involved is $10,000 or less, you can do this in court. It’s an inexpensive process and you don’t need a lawyer.
3. You can contact our ministry for advice. Staff in the Ministry of Government Services specialize in complaints resolution and might be able to suggest the best course of action for you to take. In some cases, we might ask you to file a formal complaint, which could lead to an investigation and even to prosecution.
   

It’s an offence for a person to commit an unfair practice and can result in a fine of up to $50,000 or imprisonment of up to two years less one day, or both, for individuals. A corporation that commits an unfair business practice can be fined up to $250,000.

Personal Property Security Act

Under this legislation, our Personal Property Security Registration System records business and personal loans in which goods and other property, such as cars and boats, are used as collateral. Before buying a used car or other used goods, you should carry out a search of this database to make sure there are no outstanding liens. (As an added protection, private sellers of used vehicles are required to provide a buyer with a Used Vehicle Information Package [UVIP].) This valuable package contains a history of the vehicle and a record of any liens up to two days before the UVIP was purchased.

Part IV of the Consumer Protection Act, 2002 — Personal Development Services

Joining a fitness club? Or a club that will teach you to dance, help you shed pounds, learn martial arts or develop your performing talents? If so, you should know:

• you get a cooling-off period. If you don’t like the facilities, or find that tae kwon do is not for you, you have 10 days to cancel the contract and get your money back;
• club memberships are limited to one year. That way, if the club folds, you haven’t paid for a worthless lifetime contract;
• clubs must give you the option of paying monthly. Even though this allows the club to charge up to 25 per cent more, paying by the month means you lose less if the club should suddenly close.

Loan Brokers —  Part V of the Act

If you decide to answer an ad promising to obtain loans “even for people with poor credit ratings,” the first thing you should know is that it’s illegal for anyone to demand payment in advance for helping you get a loan. Some loan brokers continue to do so, and all too often the loans never happen.

Under Part V of the act, loan brokers offering to help you obtain a loan, whether from another person or from their own funds, must provide you with a written agreement with the following information:

• name, address and telephone number of the loan broker;
• source from which the loan broker will attempt to obtain the loan, if known;
• amount of the loan the loan broker will attempt to obtain;
• the total amount the consumer pays to the loan broker.

Collection Agencies Act

If your debt has been handed over to a collection agency, don’t panic. Agencies will often accept a reduced payment schedule if you’re unable to meet the previously agreed to instalments. And to help ensure that you’re treated fairly, the Collection Agencies Act places clear limits on the steps that can be taken to collect a debt. Collection agencies cannot:

• try to collect a debt without attempting to inform you in writing that they have been retained to do so;
• take telephone calls or personal visits of a harassing nature;
• try to collect on Sundays and holidays, or before 7 a.m. or after 9 p.m. on any other day;
• give anyone false information that could be harmful to you or your family.