Ontario payday loans and providers
The payday lending industry has grown rapidly in Canada since its establishment in the early ’90s. Currently, about 1,350 providers operate in the country, with 750 of them based in the province of Ontario. Numerous other payday outfits also operate online and via telephone. Hence, consumers face a tough time when choosing an appropriate payday provider in the province. Nonetheless, the Ministry of Consumer Services in conjunction with the Canadian Payday Loan Association, has taken steps to provide additional protection for residents who require payday loans in Ontario. Below are four important guidelines and tips to assist Ontario locals in choosing the appropriate payday loan providers:
Licensing Details
The Payday Loans Act of 2008 required all payday lenders and brokers in Canada to obtain requisite licensing for their main offices and branches from the registrar located at the Ministry of Consumer Services. As such, individuals in need of short-term credit from payday providers should start by requesting for the prerequisite licensing details. Unlicensed providers operate in contravention of laid-down laws and are almost always fraudsters. One can confirm the licensing details of a lender by making a request to the consumer protection branch of the Ministry of Consumer Services in Ontario.
Terms and Conditions of Borrowing
Generally, the terms and conditions for payday loans in Ontario are likely to be similar among most providers. This is because the provincial lending laws regulate this industry strictly, including an overall cap on the interest rate that lenders can charge for payday loans. Hence, it is advisable for borrowers to familiarize themselves with Ontario payday laws, to enable them detect anything out of place when comparing offers from different providers. Borrowers should pay keen attention to the laws concerning rollover facilities, and the cooling-off period permitted for payday loans. The Ontario Payday Lending Education Funding is in place to ensure borrowers receive the necessary information and due diligence needed to make a smart decision on short-term loans.
Loan Cancellation Rules
Borrowers have an option of cancelling the loan within two days without necessarily stating their reasons to the lender, according to Ontario payday laws. This consumer protection clause appreciates the fact that one may need several days to rethink the borrowing option made earlier. As such, borrowers may opt out of the loan agreement if they receive a better offer elsewhere, or realize that other credit options exist in the market. Lenders cannot charge a penalty for loan cancellation by a borrower provided the borrower opts out within two business days.
Information Disclosure
Payday lenders in Ontario must provide a payday credit agreement to prospective borrowers, outlining all details that pertain to the credit facility as required by the law. This information assists borrowers to compare offers from different lenders in order to make the smartest decision. Avoid payday lending companies that do not provide such an agreement, since they are likely to be fraudulent in nature.
Individuals in need of short-term credit assistance of less than a month may go for payday loans in Ontario. Numerous brokers and financial agencies provide these loans to interested Ontario residents. However, the huge number of providers pitching different offers may confuse a typical borrower. Thus, a borrower should request for a credit agreement from the lender, in order to compare the terms of lending, cancellation information and licensing details in order to make a smart decision on the appropriate provider.