Payday loan agreements
2008, c.3, s.1
37.28(1)A payday lender shall ensure that the terms of a payday loan are included in a written agreement that is signed and dated by the borrower.
37.28(2)A payday lender shall ensure that the payday loan agreement includes all of the following terms, information and statements:
(a)
the payday lender’s name and any business name used by the payday lender;
(b)
the payday lender’s business address and, if different, the payday lender’s mailing address;
(c)
the payday lender’s licence number, telephone number and, if the payday lender has a fax number or e-mail address, that fax number and e-mail address;
(d)
the borrower’s name;
(e)
the date of the making of the agreement;
(e.1)
the date on which the first advance will be made to the borrower or to the order of the borrower, which date shall not be more than the number of days prescribed by regulation after the date of the making of the agreement;
(e.2)
the date or dates on which any other advances will be made to the borrower or to the order of the borrower;
(f)
the principal of the payday loan;
(g)
the term of the payday loan;
(h)
with respect to each advance referred to in paragraphs (
e.1) and (
e.2), the amount of cash to be advanced to the borrower or the amount of money to be transferred to the borrower or to the order of the borrower;
(i)
the amount of credit available on a cash card issued to the borrower;
(j)
if a cash card issued to the borrower has an expiry date, the date of that expiration;
(k)
the total cost of credit and the APR;
(l)
the rate of interest that applies, together with a statement of the total amount of interest that is payable under the agreement;
(m)
each of the fees, penalties, rates, commissions or charges regulated under this Part or the regulations relating to this Part that apply, together with a statement of the amount of each of those fees, penalties, rates, commissions or charges;
(n)
the amount and timing of any payments to be made by the borrower;
(o)
a statement that the payday loan is a high cost loan;
(p)
a statement of the borrower’s rights of cancellation under section 37.29, setting out how those rights can be exercised and identifying the time by which the borrower can exercise them;
(q)
a statement of the remedies available to the borrower under subsection 37.31(2), 37.34(2) or (3) or 37.37(2);
(r)
if a cash card is to be issued to the borrower, a statement identifying that third party service charges may apply for use of the card; and
(s)
any other term, information or statement prescribed by regulation.
37.28(3)The payday lender shall ensure that the terms, information and statements required under subsection (2) are written in a clear and comprehensible manner.
37.28(4)A payday lender may base information required by subsection (2) to be included in a payday loan agreement on an estimate or assumption if
(a)
the information required to be included depends on other information that is not ascertainable by the payday lender at the time the payday loan agreement is entered into, and
(b)
the estimate or assumption is reasonable and is clearly identified as an estimate or assumption.
37.28(5)Before the borrower signs the payday loan agreement, the payday lender shall review with the borrower the matters described in paragraphs (2)(
k) and (
p) and require that the borrower initial each of those matters in the agreement.
37.28(6)The payday lender shall give the borrower a copy of the payday loan agreement at the time it is signed by the borrower, together with a notice of cancellation, containing the information prescribed by regulation and in a form approved by the Director, which may be used by the borrower for the purposes of subsection 37.29(4).
2008, c.3, s.1; 2014, c.31, s.1, 2016, c.5, s.1