Acts and Regulations

C-28.3 - Cost of Credit Disclosure and Payday Loans Act

Section 37.29
Disposition versions

Full text
Cancellation
2008, c.3, s.1
37.29(1)In subsections (4) and (5), “payday lender” includes an officer or employee of a payday lender at a location at which a payday loan was arranged or provided.
37.29(2)A borrower may cancel a payday loan within 48 hours, excluding Sundays and other holidays, after receiving the first advance or a cash card enabling the borrower to access funds under the loan.
37.29(3)In addition to having a cancellation right under subsection (2), a borrower may cancel a payday loan at any time, if
(a) the payday lender did not notify the borrower of his or her right under subsection (2) to cancel the loan,
(b) the notice of cancellation given to the borrower does not meet the requirements of subsection 37.28(6), or
(c) the payday lender did not hold a proper licence at the time the payday lender entered into the payday loan agreement with the borrower.
37.29(4)To cancel a payday loan under subsection (2) or (3), the borrower shall
(a) give written notice of the cancellation to the payday lender, and
(b) repay, by cash, certified cheque or money order or in a manner prescribed by regulation, the outstanding balance of all advances made, less any portion of the total cost of credit that was paid by or on behalf of the borrower or deducted or withheld from the advances.
37.29(5)For the purposes of paragraph (4)(b),
(a) if the first advance was made in the form of a cheque, a return of the unnegotiated cheque to the payday lender is to be considered a repayment of the first advance, and
(b) if the first advance was made in the form of a cash card that enabled the borrower to access funds under the payday loan, returning that card to the payday lender is to be considered a repayment of the first advance to the extent of the credit balance remaining on the card.
37.29(6)Upon the cancellation of a payday loan under this section,
(a) the payday lender shall immediately give the borrower a receipt, containing the information prescribed by regulation and in a form approved by the Director, for the amount that the borrower paid or returned to the payday lender upon cancelling the loan, and
(b) the payday lender shall immediately reimburse the borrower, in cash, for all amounts paid, and the value of any other consideration given, by or on behalf of the borrower in relation to the total cost of credit for the loan, less any amount deducted or withheld from the advances or from the repayment of them under paragraph (4)(b).
37.29(7)The cancellation of a payday loan under this section extinguishes every liability and obligation of the borrower under, or related to, the payday loan agreement.
37.29(8)No payday lender shall charge or require or accept the payment of, or arrange for or permit any other person to charge or to require or accept the payment of, any amount or consideration for, or as a consequence of, the cancellation of a payday loan under this section.
37.29(9)The cancellation rights under this section are in addition to, and do not affect, any other right or remedy the borrower has under the payday loan agreement or at law.
2008, c.3, s.1; 2014, c.31, s.1; 2016, c.5, s.1