Definition
Quebec's Consumer Protection Act (CPA) applies to credit contracts between merchants and consumers. For mortgages, its application is limited (federal banks are governed by the Bank Act), but it covers certain aspects:
- **Variable credit contracts** (non-bank lines of credit): the CPA imposes maximum interest rates and disclosure obligations - **Mortgage brokers**: Quebec mortgage brokers (non-banks) must comply with CPA provisions on advertising and disclosures - **Usury**: the CPA sets a maximum interest rate beyond which a contract may be declared abusive by a court
Limitations: mortgages granted by federally chartered banks are primarily governed by the Bank Act (federal) rather than the provincial CPA. The CPA applies more to provincial lenders, cooperatives, and finance companies.