The Ontario Consumer Protection Act, SO 2002, c 30,
Sched A (the "CPA") contains provisions
requiring lenders to provide extensive financial disclosure to
consumers. Although the consequences of a lender's
non-compliance can be severe, including punitive or exemplary
damages payable to the consumer, case law on the disclosure
provisions of the CPA is relatively sparse. Accordingly, the
Ontario Superior Court's recent decision in Lexfund v Ferro
et al, 2016 ONSC 4113
("Ferro") is particularly
valuable for illustrating the lender disclosure requirements and
the court's interpretation thereof.
The Plaintiff in Ferro, Lexfund Inc., is a corporation
that loaned money to various personal injury claimants to assist
them in financing their litigation, medical and living expenses,
and other disbursements pending a resolution of their motor vehicle
accident claims. The claimant borrowers had all retained the law
firm of Ferro & Company to represent them and it was Mr.
