You may be able to terminate your payday loan agreement from the date you signed it, or if the lender breached the rules.
Two days delay
You can cancel your payday loan agreement at any time within two business days of the date you signed it, until the end of the second business day. For example, if you signed your agreement on Wednesday morning at 11:00 am, you have until the end of the day on Friday, at the closing of the lender’s institution, to terminate it.
If the establishment is closed on the second day, then you have until the end of the next day it is open to terminate your agreement. For example, if you got your loan on Friday and the property is closed on Sunday, you have until the end of the day on Monday to terminate your agreement. If you got your loan on Saturday and the property is closed on Sunday, you still have until Monday to cancel your agreement.
This two-day period is called the reflection period. You always have a cooling-off period, even if your loan agreement does not mention it.
When you cancel your agreement, you do not need to explain why.
In addition, you must repay the borrowed money, but you do not have to pay any fees or interest.
After two days
After the two-day period, the loan agreement can only be terminated if the lender has not complied with the rules, for example:
- if he did not give you a copy of the agreement right after you signed it;
- if he has not given you the money since the signing of the agreement if you have signed it in his establishment;
- if he has not given you the money within one hour after the conclusion of the agreement if you have made it online or by telephone.
You may also terminate your agreement if it does not contain all the required information.
However, you can not terminate it if all the rules have been followed. You must repay the amount borrowed and the fees charged by the lender. If you can not repay the loan, talk about your options to a credit counselor at a non-profit agency.