Canceling the Payday Loan – Payday loans are also known as cash advances and getting a payday loans is easy.
Canceling the Payday Loan
Payday means borrowing a small amount of money to repay on or around your upcoming day on payment. If you change your mind and decide that you should not get a payday loan. Or else find a lender with more reasonable interest rate, you have a chance to cancel a payday loan agreement without giving a reason.
You can borrow up to $1500 to cover your unforeseen or emergency expenses with a high interest rate. You can not borrow more than %50 of your net monthly pay per loan and you have to repay within 14 to 28 days. To get a payday loan, you should provide a proof of employment, a proof of you address and your account details.
Canceling the Payday Loan Within 2 Days
If you change your mind and want to cancel the payday loan within two days of signing the personal loan agreement, first thing you should do is to contact your lender.
That two days are called the cooling-off period and it is the only chance to give your lender a letter of rescission.
That letter should contain;
- your name and address,
- the date,
- the name of the lending company and address,
- the date of your contract,
- when you took the loan,
- how much you borrowed,
- that you want to cancel your loan agreement and your contact information.
After you cancel the loan agreement, you should give back the loan amount you had received without paying off any fees or interest.
Cancelation after 2 Days
If you have missed the cooling-off period, now you can cancel your payday loan if the lender does not follow all the rules.
According to the rules, payday lenders do not have a right to:
- Charge interest and fees (More than $15 for every $100 you borrow)
- Give you more than half of your monthly pay per loan
- Want you to pledge a collateral or find a co-signer
- Lend you a new loan unless you have paid off the previous one
- Call you more than 3 times a week or on holidays
- Take money from your pay cheque
If you have a chance to cancel the agreement and the lender did not break any rules, you should give back the money you had borrowed plus additional fees or interest.
But, if the lender did break the rules, you do not need to pay additional fees.