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New Regulations for LOCs and Mortgages

Department-of-Finance The Department of Finance (DoF) put new credit card regulations in force yesterday. A few of the rules also apply to credit lines and mortgages.

The DoF says the new regs are designed to “ensure that consumers have access to credit on terms that are fair and transparent.”  It told us the following regulations will now apply to secured and unsecured lines of credit:

  • A prominent summary box must now appear on credit contracts, disclosing all material fees, rates, etc.
  • New restrictions now apply to debt collection practices (for example, lenders can no longer hound delinquent borrowers after certain times of the day)
  • All credit disclosures must be made in language that is “clear, simple and not misleading”
  • New rules now specify when statements and rate change notices must be sent to consumers

The following regulations now apply to mortgages:

  • The requirement to provide a summary box on the mortgage contract
  • The above restrictions on debt collection practices

More Background…