BC-1.4.15
In addition to the initial disclosure of key terms noted in Paragraphs BC-1.4.13 and BC-1.4.14, the "key terms disclosure" document must, amongst other things, make clear:
(a) The detailed breakdown of the payments:
(i) The principal amount being borrowed and the maturity of the credit agreement;
(ii) The net amount provided to the customer after deducting or applying any upfront or other charges;
(iii) The total interest/profit payments and principal repayment for the term of the credit agreement; and
(iv) The total administration/handling fees and all details of any other fees and charges spread over the term of the credit agreement;
(b) The APR and the nominal annual rate as defined in Paragraphs BC-1.4.10 and BC-1.4.4(b) respectively;
(c) Whether the rate of interest/profit is fixed or can be varied, and under what circumstances;
(d) The basis on which interest/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 "top-ups" of credit agreements or other alternative arrangements for extending additional credit or early repayments, whether partial or full, of amounts due including the treatment of remaining interest/profit and the payment of premium for insurance;
(f) Any late payment charges; and
(g) Any other charges related to the credit agreement not included above, all details of which must be provided to the customer .
January 2014