If you are thinking about taking out a loan in one of the many payday loan establishments in Canada, there are certain rights that you, the consumer, have a right to know. When you are looking for a loan it is a good idea to keep these in mind. The first thing you need to know is that you have to right to see the full disclosure of what your loan by phone contract says. It is your name on the documents and you are legally obligated to fulfill the terms of that contract, so you have a right to know what those terms are. If a lender refuses to divulge this information to you, you should take your business elsewhere.

On the first page of the contract the lender needs to have the information on the amount of the loan borrowed and the number of days you have to re-pay the loan. The total of which should include any fees or taxes that are applicable to payday loans by phones. You the consumer also have the right to read advertisements that have not only state what you can borrow, but how long the terms of a contract will be. You should also be aware that lenders cannot, by law, charge more than $21 for every $100 borrowed. This is good to know in case a company tries to charge you more. If they do, again, you should take your business elsewhere.

Something else that you should take into consideration is that if you take out a same day payday loans for 14 days, you cannot take out another loan within that time frame from the same lender.
This law is in effect for the purpose of discouraging consumers who get over the phone loans from getting into too much short term debt. You’ll notice that the exact terminology states “the same lender”. Which means that you can still seek out another lender. Keep in mind that these lenders do extensive checks on applicants and they will know if you already have another outstanding debt and probably won’t loan you any more money anyway.

One thing that many people may not know is that you have a grace period of 2 days from the date which you signed the contract to back out of it. By law the lender has to consent to your request to this if you ask them to and they cannot charge you any processing fees that will go the loans by phone company in question. Many people find that they had rushed to judgment when applying for the loan, only to find out later that they didn’t need it as bad as they thought. This law is made to protect the people who on occasion do this. It’s an honest mistake that people shouldn’t have to pay for.

You also have the right to not be harassed by anyone who works for or owns one of these establishments. By law, harassment constitutes phone calls or e mails more than three times per week with language that is intimidating to threatening in nature. A payday loans over the phone establishment that does this should be reported to the proper authorities. As a consumer you should be treated with the respect and civility that you are expected to extend to the people and companies who you do business with.