Overview of Obligations: Retail associations

The Co-operative Credit Associations Act is the primary legislation governing all federally incorporated or registered retail associations in Canada. FCAC is responsible for administering the consumer provisions summarized below.

Click the link below to view the full text of the consumer provisions, including the changes that came into force on April 20, 2007, following Bill C-37 receiving Royal Assent on March 29, 2007. This document will be updated periodically to incorporate other changes as new provisions set out in Bill C-37 come into force.

Note: Always check against actual legislation for certainty

• Consumer Provisions Supervised by FCAC and Other Relevant Provisions: Cooperative Credit Associations

Branch closures

• Requirement to provide a minimum notice period before closing a retail branch.
  

Cashing federal government cheques

• Prohibition on charging for cashing federal government cheques.
  

Committee of the Board of Directors

• Requirement to designate a committee of the Board of Directors to monitor procedures regarding disclosure of information to customers and to deal with complaints, as required under the Act.
  

Complaint procedures

• Requirement to put in place a procedure for handling complaints and to file a copy of the procedure with FCAC.
  
  
• Requirement to join a complaints resolution organization.
  
  
• Requirement to provide information to customers on contacting FCAC.
  

Disclosure requirements

• Requirement to disclose information to consumers with respect to:
  
  
  • interest and charges applicable to deposit accounts;
    
    
  • cost of borrowing;
    
    
  • terms and conditions of loan prepayments;
    
    
  • a customer's rights and obligations when being issued a credit, charge or payment card, and any associated costs;
    
    
  • insurability of deposits by CDIC;
    
    
  • principal protected notes;
    
    
  • any other products and services, policies, procedures or practices, as specified by regulation.
    
    
• Requirement to provide information to FCAC Commissioner as deemed necessary.
  

Opening/closing a retail deposit account (RDA)

• Within 14 days of opening an RDA by telephone, consumer right to close the account without charge.
  

Loans and credit/charge cards

• Consumer right to prepayment of certain types of loans.
  
  
• Prohibition on loans that require minimum credit balances to be maintained by borrower, unless expressly agreed to.