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  • Variation Disclosures Requirements

    • BC-1.4.18

      Licensees must disclose to the customer in advance, either collectively or individually, all relevant changes or variations to a credit agreement. The circumstances in which a customer must be provided with variation disclosures are:

      (a) If both the licensee and customer agree to change the credit agreement; in this case, the customer must be provided in writing with full particulars of the change, at least seven calendar days before it takes effect; and
      (b) If the credit agreement gives the licensee power to vary fees or charges, the amount or timing of payments, the interest/profit rate or the way interest/profit is calculated, and the licensee decides to exercise that power, the customer must be provided with full particulars of the change, including an updated schedule of the total interest/profit payments and principal repayment for the remaining term of the credit agreement, at least thirty calendar days prior to the date the change takes effect. Such notice is to enable the customer to decide whether to accept the new terms or terminate the agreement by settling the outstanding credit amount, in accordance with relevant provisions therein, which must have been stated in a clear and understandable manner.
      January 2014

    • BC-1.4.19

      Any increase of the interest/profit rate or the amount of any fee or charge payable under a credit agreement, must be disclosed publicly, by conspicuous notice, at least thirty calendar days prior to the date the change takes effect by:

      (a) Displaying the information prominently at the licensee's place of business; and
      (b) Posting the information on the licensee's website.
      January 2014

    • BC-1.4.20

      Any deferral of interest/profit or principal announced by the licensee must also take account of the APR methodology as shown in Paragraphs BC-1.4.23 to BC-1.4.25, and the new APR must be given to the customer or made public in advertisements.

      January 2014