You may have to pay a penalty of between $ 15 and $ 40, depending on the province where you borrowed.
The penalty is added to Instant payday loans no tele-track for people the amount you already owe the lender, and interest accumulates until you pay off the loan in full.
You live in British Columbia. The 1 st of May, you borrow $ 100 to a payday lender. The loan will cost you $ 17 and it will mature on May 15. You therefore give the lender a check for $ 117 postdated on May 15. You sign the contract and leave with your $ 100 in your pocket.
On May 15, your check is rejected for insufficient funds and the lender charges you a penalty of $ 20. You now have to repay a total of $ 137 to the lender.
On May 30, nothing is going right. Your financial situation still does not allow you to repay your loan. You owe $ 25 in interest for a total that now stands at $ 162.
In less than a month, you have accumulated fees and interest of $ 62 for a loan of $ 100 ... Interest continues to accumulate as long as you have not repaid the full amount.
Payday lenders can use the services of a collection agency. The agency or lender can take you to court to get the money you owe them. If a judgment is ordered against you, your wages or government benefits may be garnished at source.
Since payday loans are consumer contracts, the general principles of consumer protection apply to payday lenders. A lender therefore cannot lie to you, take advantage of your vulnerability, make unfair assertions or use unfair practices.
In Alberta, a lender must provide you with sound financial management documents before granting you a payday loan. These documents :
- are approved by the government,
- explain the programs, services and resources available to consumers wishing to borrow,
- must be clearly visible on the premises and on the lender's website.
A lender who fails to meet these conditions is subject to sanctions.
f you believe that your rights as a consumer have been violated or that the lender has breached its obligations as a payday lender (for example, if the interest rate it charges is higher than the rates prescribed in your province or territory or if the lender refuses you a cooling-off period when you are entitled to it) you can file a complaint against the lender with the consumer protection organization of your province or territory or take him to court .
A payday loan is a short term loan with high fees which makes this means of borrowing very expensive. You can borrow up to $ 1,500. You must repay the loan when you receive your next paycheck.
In the following provinces, you have up to 62 days to repay the loan:
- Alberta
- British Columbia
- Manitoba
- New Brunswick
- Ontario
If you cannot repay the loan on time, you will have to pay more fees and interest. This will increase your debt.
Payday loans exist to help you if you run out of money before your next payday, or for a short time. Avoid using it to pay costs like rent, groceries, or utility bills. If you use them this way, you could end up with financial problems.
Payday loans are offered in store and online by private companies.
