103.4. Before entering into a high-cost credit contract with a consumer or, if the high-cost credit contract is an open credit contract, before granting a credit limit increase, a merchant must, in accordance with the terms and conditions determined by regulation, give the consumer a written copy of the documents containing the assessment carried out under section 103.2 and information on the consumer’s debt ratio.
A merchant who meets the conditions for applying the presumption under the second paragraph of section 103.2 but fails to comply with the first paragraph is deemed not to have carried out the assessment under section 103.2.
A credit contract is considered to be a high-cost credit contract if it has the characteristics determined by regulation.
The debt ratio is a measure of the consumer’s liabilities expressed as a percentage. It is calculated in the manner prescribed by regulation.