A new Canadian law requires companies to give you a refund when you make a mistake in paying for an item or service, and says companies should be transparent about how it happened.
The law is called the Fair Debt Collection Practices Act.
It was introduced to Canada in the wake of the financial crisis, and is intended to help businesses avoid the “death spiral” of overbilling customers.
A consumer’s credit card bill can be a financial nightmare for many, and the federal government recently announced it will spend $6.4 million to implement the law.
The Fair Debt Collecting Practices Act requires companies, including big-box stores, to give refunds to consumers if they have made a mistake.
Companies can also offer refunds to customers who are not entitled to a refund, even if the consumer is entitled to it.
But, until now, the law has only required a refund to be given if you are not a party to a claim against the company.
When you are charged for an expensive service or product, the bill is usually due.
If you have the money and don’t pay, you will not be refunded, and your credit card will be charged back.
For the first time, the federal Fair Debt Collector Act also requires companies that offer refunds be open and transparent about the circumstances surrounding a customer’s refund.
That means companies should provide details about the reasons behind the refund, how it was made, and any other information that could be used to protect customers from similar situations.
To help companies be more transparent, the Fair Credit Reporting Act also will be amended to require that they be able to explain how their policies apply to claims for refunds.
As part of the legislation, companies must also disclose whether refunds are made to consumers who were not entitled under their contracts.
What are the benefits of the new legislation?
The Fair Credit Collection Practices act will make it easier for consumers to get refunds for the things they purchase online, and for the companies they work with.
Under the Fair Consumer Credit Act, companies can offer refunds if a consumer has not been paid on an item, service or goods within six months of their receipt.
A refund is a form of payment that can be used in conjunction with other payments and benefits, including employment insurance benefits and tax benefits.
A company cannot make a refund if the payment was made in error, or because a consumer failed to give their full consent.
The act also requires that companies make the refund available to customers with the same eligibility requirements as they would have had if the purchase was made online.
Consumers can also get refunds if they receive an item as a gift, or if they buy something from a store that has an online store credit card.
If a company doesn’t make it available to consumers with the right eligibility requirements, the company is required to provide the refund.
The Fair Consumer Act also establishes a $20 annual limit on the amount a consumer can be charged for a refund.
The federal government has set a limit of $5,000.
The Fair Debt and Collection Practices Acts also mandate that companies pay a refund of up to 30 per cent of the purchase price.
If you are having trouble getting a refund from a company, you can call the Consumer Credit Reporting Agency at 1-800-872-0472 or visit www.consumer.gc.ca/consumerrecovery.ca for assistance.