Applying for Payday Loans in Canada
Millions of Canadians have the pleasure of earning a paycheck through their employers. However, there are times when that check is just not enough to cover all your expenses, and you need to find payday loans in Canada to make up the difference. Short term loans quickly and easily gets you the money you need. Whether it is for an emergency, unexpected travel, or just to pay the bills, payday loans in Canada will get you the money fast.
A payday loan is a small short term loan. Payday loans in Canada are advancements against your next paycheck. You are expected to pay back the entire loan from your next paycheck. Payday loans in Canada can lend as much as $1,500.00, however the average Canadian borrows around $300-500. The fees associated with payday loans in Canada are considerably higher than those of banks and credit cards, but payday loans are much easier to acquire as there is no background check.
What are Payday Loans used for?
The answer is pretty straight forward. It is your money and you can do whatever you please. Maybe you have some overdue credit card bills or an unexpected medical expense. Perhaps you are taking a family vacation and could use a little extra cash. Whatever your reason is, payday loans in Canada can get you the money you need with no questions asked.
Are there any risks involved?
Payday loans in Canada should be viewed as a small, one time cash advancement designed to help you get over a hurdle. Every situation is different and how deeply in debt or how much is needed to borrow will depend solely on that individual. It is important to remember that anytime you borrow money from a financial institution, there is an agreement that you have to repay the loan with additional fees attached.
Consumers should pay careful attention to their financial matters to avoid getting into deeper debt with payday loans in Canada. Even though you are allowed to borrow up to $1,500.00, you should avoid borrowing more than what is necessary. Payday loans are designed to receive repayment of the loan directly from your bank on your next payday.
What are the Rules and Regulations?
Under the new Payday Loans Act, each province sets rules to protect the consumer and sets clear boundaries on the practices of these organizations. The information that follows is a list of some of the provisions which are useful to the consumer. You will always want to check the latest rules and regulations, as the payday loan laws continue to evolve.
1. Consumers are not required to provide wage assignments any longer when applying for payday loans in Canada. There is a maximum cap for borrowing the money and you will not be asked to pay more.
2. Some provinces, such as Ontario, are required to use standardized contracts for all payday loans in Canada. They must also display a large poster explaining their terms and conditions for the consumer to see.
3. The new act has called for business transparency and improved the guidelines for receiving payday loans as well, which is provided to the public on the ministry website.
4. Brokers and lenders are both required to obtain a license in order to continue their payday loans in Canada business. They must also make this information available online and clearly visible inside their shop.
5. Whether you are applying over the phone or through the Internet, the lending organization must make the credit available to the consumer within one hour.
6. Rollover loans are against the new regulations. Individuals can not apply for new loans when they have not paid off a prior loan.
7. Lenders can no longer use coercive measures to recover the funds. This means no more threatening phone calls or harassment from your lender putting you or your family in danger.
8. Lenders are no longer allowed to deduct fees right off the top of the requested loan amount. They are required to credit the full amount into the bank account. The fees are paid at the time of the repayment of the money borrowed.
9. Lenders cannot charge high penalties when a consumer wishes to cancel their loan. They have to give the customer at least two days to cancel or return the money without charging them a penalty. Lenders are no longer allowed to ask for an explanation for the return either.
The best part is that the whole process can now be done online. You simply fill out a quick form that includes your bank account information and within a matter of minutes you will have an answer. Once you are approved, the funds will be transferred to your account the same day. If you find yourself in a jam and need some quick cash, payday loans in Canada is your answer, no questions asked.
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