2. If you change your mind after 2 days

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

The rules say payday lenders can't:

• charge interest and fees more than $15 for every $100 you borrow
• lend you more than 50% of your net monthly pay per loan
• ask you for collateral
• ask you for a guarantor 
• give you a new loan until the first one is paid off
• 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

What payday lenders have to do

The rules say what has to be in a payday loan agreement. This includes things like:

• It must be in writing.
• It must be printed in text that is big enough to read easily.
• It 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.