Fax less pay day loans

If you enter into at least three payday loan agreements with a borrower within a period of 63 days, the third agreement (and subsequent agreements) must provide for an extended repayment plan (installments). You should also follow the following rules:

  • payments must be distributed evenly over a minimum number of borrower's pay periods;
  • the amount of each payment without fax pay day online must not exceed the amount specified in article 25.1 of the General Provisions ;
  • if the borrower makes an advance payment, you must:
    • adjust future repayment payments and distribute them evenly over the remaining term of the agreement,
    • provide the borrower with a written update to the agreement,
  • the cost of borrowing, when converted to a credit rate, must be less than the criminal rate within the meaning of the Criminal Code of Canada (60 percent), which is calculated differently from the credit rate.

Before entering into a payday loan agreement, you must:

  • inform the borrower of all of the options available to them to obtain an advance under the loan agreement from you (for example, cash or credit to a debit card);
  • provide the borrower with the advance under the loan agreement according to the option he chooses.

If a borrower agrees, you can contact their employer (or the employees of that employer) before the borrower enters into a payday loan agreement. The sole purpose of this contact is to confirm the borrower's employment, the duration of this employment, the income derived from this employment, his occupation or his business address.

You must immediately deliver the advance to the borrower as soon as he enters into the payday loan agreement.

For remote payday loan agreements, such as online loans, you have one hour to make the advance accessible to the borrower. Learn more about the rules for distance payday lenders .

If you provide all or part of the advance other than in cash (for example, if the advance under the Payday Loan Agreement is credited to a debit card), you must tell the borrower that he can :

  • receive the advance or the balance of the cash advance, immediately and free of charge if requested;
  • may apply orally or in any other way.

If you do not follow these rules, a borrower is only required to repay the advance under the payday loan agreement and is not liable for the cost of borrowing.

You must accept a payment from a borrower, whether it is a full payment or a partial payment:

  • at any time, if the borrower makes the payment by one of the methods authorized under the agreement;
  • no fees or prepayment indemnity.