BC-4.2.22
In addition to the initial disclosure of key terms noted in Paragraphs BC-4.2.17 to BC-4.2.21, the "key terms disclosure" document must at the time of signing the credit agreement, amongst other things, make clear:
(a) The detailed breakdown of the payments:
(i) The principal amount and profit per month of the financing facility and the maturity of the credit/financing agreement;
(ii) The net amount provided to the customer after deducting or applying any upfront or other charges;
(iii) The total profit payments and principal repayment for the term of the credit agreement; and
(iv) The total administration/handling fees and any other fees and charges spread over the term of the credit agreement.
(b) The APR and annual nominal rate as defined in Paragraph BC-4.2.31;
(c) Whether the rate of profit is fixed or can be varied, and under what circumstances;
(d) The basis on which profit is charged (e.g. actual reducing balance) and applied to the account (e.g. monthly or quarterly compounding) and whether principal repayments are taken into account in the calculation, together with an illustration of the calculation method;
(e) The detailed costs associated with alternative arrangements for extending additional credit or early repayments, whether partial or full, of amounts due including the treatment of remaining profit and the payment of premium for takaful;
(f) Any late payment charges;
(g) The annual profit rate and credit limit being offered for credit agreements such as credit cards; and
(h) Any other charges related to the credit agreement not included above.
Amended: January 2019
Amended: July 2015
Amended: April 2014
Added: October 2012
Amended: July 2015
Amended: April 2014
Added: October 2012