Know Your Rights - Payday Loans

Video Vignette Transcript

Consumer Services spokesperson speaking outside a house. Gives consumer tips regarding buying a home.

"Payday loans offer quick cash when you need it, but you may end up paying more than you expected.

Make sure you’re informed before taking out a loan.

In Ontario, payday lenders can charge no more than $21 for every $100 that a customer borrows.

Consumers have a two-day “cooling off” period to cancel a loan with no reason and without penalty.

Your loan agreement has to fully disclose:

• the amount you are borrowing
• the number of days your agreement is for, and
• the total cost of borrowing.

You should also know that roll-over loans are not allowed. This means you must fully pay-off one loan, before taking out another one from the same lender.

Payday loans are a very expensive form of credit. If you have other options for credit, use them first.

Remember, when you use a payday loan service, be a smart consumer and reduce your risk by always dealing with a licensed payday lender.

Visit w-w-w-dot-Ontario-dot-c-a—slash – consumer services for more information."