What information you should know while getting a payday loan?

Deciding to have a payday loan can be a good thought if you face short term financial troubles. This popular kind of loans can be perfect if you fully understand the associated risks of you become unable to settle it in the due date.

In this article we will what kind of information you should know about the lending company…

  • Lending company should give you its full contact information
  • They should give you contact information for Service Nova Scotia, where you can contact for any conflicts
  • Total amount of the credit and the date of loan issuing
  • The total amount of borrowing that you must repay including any administrative fees or commissions, with identifying each single fees combining the total due amount
  • Amount of instalments with the due date and amount of each
  • They tell you, and you must know that the maximum cost of borrowing allowed by law is ($22 per $100)
  • They should tell you the annual percentage rate (‘APR’)
  • The penalties and extra charges which you will have to pay if you failed to pay by the due date. ($40 per loan, maximum interest on outstanding balance is 60%)
  • They should tell you the exact % of increase on loan renewal
  • They should tell you how to cancel your payday loan, and they should give you the cancellation form to use it in case you want to cancel your payday loan
  • They should give you a copy of your loan agreement for your reference and usage

All the above information should be stated clearly and should be easy to be understood by borrowers.

For the payday loan a contract must be signed from both parties and borrowers must read it carefully. If you are going to take you credit by cash credit, the all related information like amount of credit, expiry date and extra charges should be identified and written on the contract.