A payday loan is an advance on your salary that you have to repay with your next payday. It is an expensive way to borrow money over a short period of time. These loans can have very high interest rates.
In the majority of Canadian provinces, merchants offering payday loans are regulated. Generally, they must have a direct lenders one hour payday loans permit and register with the consumer protection organization in their province.
In general, a payday lender requires proof of salary (eg, employment or government benefits), bank account and address.The lender may also ask you for a post-dated check for the total amount of the loan (including the loan and interest)ora form authorizing him to withdraw the total amount from your bank account on the due date established in the contract.
The loan contract should include the following conditions:
The loan amount,
The number of days of the loan,
The total cost of borrowing,
The maximum cost per loan tranche of $ 100,
The total amount to be reimbursed,
The date on which the loan must be repaid,
The name and address of the lender,
The signature of the borrower.
Some lenders require that the loan agreement be signed in person and not over the Internet or by phone.
Normally, the date of repayment of the payday loan is stated in your contract. It can be spread over 62 days, or it can be calculated according to the date of your next pay or government benefit. Make sure you understand the deadlines for paying off your loan before borrowing the money.
In addition, payday lenders in the provinces of Alberta, British Columbia, New Brunswick, Nova Scotia, Saskatchewan and Ontario cannot renew or extend the timelines of your payday loan.
No. In provinces where payday loans are regulated (Alberta, British Columbia, Prince Edward Island, Manitoba, New Brunswick, Nova Scotia, Ontario and Saskatchewan), you cannot get a new payday loan before you repay the first one.
In non-regulated provinces and territories (Nunavut, Newfoundland and Labrador, Northwest Territories and Yukon), you should contact the lender for their policy on this matter.
Yes, but only in certain provinces. Consumer protection laws in these provinces provide a "cooling-off period" during which you can cancel the loan without paying interest. It varies from one to two working days depending on the province.
In other provinces and territories, you must ask the lender if they are giving you a cooling-off period.
You live in New Brunswick.You therefore have 48 hours to cancel your loan without costs or interest.You take out a loan of $ 100 at noon on the 1stof September.On the morning of September 3, you give the lender the amount borrowed by informing him in writing that you are canceling your contract.You do not have to pay any fees or interest since you terminated your loan during the cooling-off period.