9 things payday loan lender can`t ask from borrowers

9 things payday loan lender can`t ask from borrowers

In the current time a lot of people may go for a payday loan to handle urgent financial staff. It`s important to know what you should and shouldn’t accept from lender`s requirements while signing payday loan contracts.

A lender cannot ask you for:


Buying insurance in order to get a loan

Signing security for a payday loan (for example, ask you to sign an agreement that says they can take your mobile if you can’t repay the loan in the due date)

Cheques with greater value than you would owe on the due date for the entire amount, including fees.

Signing a new payday loan if you still owe money to them, because it`s illegal to have a new payday loan before you entirely pay the current one.

Applying fees or penalty in case of early fully repayment. As according to act of law that organize the payday loans, you have the right to refund if the agency charged you extra for early payment.

Signing an agreement authorize them to cut off from your wage directly if you can’t repay the loan, which is called as wage or income assignment.

A rollover, which is defined as a second payday loan used to pay out an original payday loan which you can’t pay. A rollover also can be in a form of adding an extension or renewal of your payday loan with extra fees or charges, other than interest. Although having a rollover is not allowed but renewals or extensions that only charge interest are allowed and legal.

Knowing about the above mentioned warnings will make you more confident about your deal, and remember that you can always contact Service Nova Scotia for more information or to make a complaint.



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