2. If you change your mind after 2 days

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After the 2-day cooling-off period, you can only cancel the agreement if the payday lender did not follow all the rules.

The rules say payday lenders cannot:

  • charge and fees more than $14 for every $100 you borrow
  • lend you more than 50% of your net monthly pay per loan
  • ask you for or a
  • offer you other services when you apply for a loan, like buying your gold or jewellery, or cashing your cheques
  • contact you more than 3 times a week or on statutory holidays
  • take money from your paycheque to pay the loan

If you already have a , the lender cannot give you a new loan until the first loan is fully paid.

What payday lenders have to do

The rules say what has to be in a payday . For example, the agreement:

  • must be in writing.
  • must be printed in text that is big enough to read easily.
  • must have details like:
    • a 2-day cooling-off period, during which you can cancel the loan for any reason without paying any fees
    • when you must repay the loan
    • the total amount you must repay
    • what it would cost to borrow $500
    • the cost of borrowing as an annual interest rate for a 14-day loan

What you get

The rules say that as soon as you sign a payday loan agreement, the payday lender must give you:

  • a copy of the agreement right away
  • the full amount of the money you want to borrow — they cannot keep part of it to cover any fees or charges
  • the money as soon as you sign the agreement in person, or within one hour if you make the agreement online

If you borrow from a payday lender over the internet, you can usually get the money by picking it up at their store, or they can deposit it into your bank account.

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