Consumer protection now expected July 1, 2006
Mortgage discharges: within 30 days, for no more than $75
A consumer protection reform that was expected on January 1 has been delayed until July 1, 2006.
Section 72(2) and (3) of the new Business Practices and Consumer Protection Act, SBC 2004, c. 2 (Bill 2) will require financial institutions to make mortgage discharges within 30 days of repayment of a mortgage loan and for a maximum discharge fee of $75, as prescribed by regulation.
Section 72(2) and (3) of the Act reads:
(2) The credit grantor must give to the borrower a discharge of the mortgage loan, registrable under the Land Title Act, within 30 days after
(a) the whole amount of principal and interest owing under the mortgage loan has been repaid to the credit grantor, and
(b) if the mortgage loan is a revolving mortgage loan, the borrower has requested a registrable discharge of the mortgage loan from the credit grantor.
(3) A credit grantor must not charge or accept any amount for or in relation to the provision to the borrower of a discharge of mortgage under subsection (2) that exceeds the maximum amount prescribed.
The Law Society supports the reform, having urged financial institutions previously to provide prompt and reliable discharge details and to deliver up discharges expeditiously.
For more on consumer protections under the legislation, see: www.qp.gov.bc.ca/statreg/stat/B/04003_01.htm.