103.2. Before entering into a credit contract with a consumer or, if the credit contract is an open credit contract, before granting a credit limit increase, a merchant who is to enter or has entered into a credit contract must assess the consumer’s capacity to repay the credit requested.
A merchant who, in carrying out an assessment, takes into account the information determined by regulation and collected, as the case may be, in accordance with the method that may be determined by regulation is deemed to comply with the obligation under the first paragraph.
A merchant who is subject to the Insurers Act (chapter A-32.1), the Act respecting financial services cooperatives (chapter C-67.3), the Trust Companies and Savings Companies Act (chapter S-29.02), the Bank Act (S.C. 1991, c. 46), the Insurance Companies Act (S.C. 1991, c. 47), the Cooperative Credit Associations Act (S.C. 1991, c. 48) or the Trust and Loan Companies Act (S.C. 1991, c. 45) and who must adhere to sound and prudent management practices or sound commercial practices in consumer credit matters is also deemed to comply with the obligation under the first paragraph.
If a contract is transferred to another merchant after having been entered into, and that merchant is the one who approved the contract, the transferee becomes the merchant bound by the obligations under this section and the one to whom the effects of section 103.3 apply.
2017, c. 24, s. 191; 2018, c. 23, s. 811.