Repayment of a payday loan

Early repayment of a payday loan

Early repayment of a payday loan

You have the right to prepay the outstanding balance at any time without additional charges or penalties. You can also make partial prepayments without additional charges or penalties, on any fixed date of payment. You will have to pay the cost of the loan (maximum of $ 15 for each $ 100 loan tranche) even if you repay the loan before the due date.

Mentions explaining these elements must be included in every payday loan contract.

Repayment of a payday loan

Repayment of a payday loan

There are rules in place to protect you when paying a payday loan.

The lender can not oblige you to assign in writing items belonging to you, such as your car or your home, for the repayment of a payday loan. The lender may not take or accept the following as a guarantee for the repayment of a payday loan, or perform any such obligation under a payday loan agreement:

  • real estate or personal property (such as your car or home)
  • an interest in real estate or personal property;
  • a bond.

The lender can not seize-stop your salary. Under no circumstances can the lender sign a document allowing you to recover the amount of your loan from your employer.

The lender can not communicate with your employer. Under no circumstances can the lender contact you at work, with your employer or with your colleagues to try to recover a late payment.

Late payment

Late payment

If you do not pay back your payday loan by the due date, this can have serious consequences. Your debt may cost you even more because of insufficient funds charges and accrued interest, and your credit may suffer. It can be easy to enter the spiral of indebtedness. Before you take out a payday loan, be absolutely sure you can repay it on the due date.