What if I can't repay the loan?
If you can't repay the loan on time, the lender can:
- charge you 2.5% interest for every month you don't pay
- sue you in court or send your file to a collection agency
- charge you late fees
If a lender tries to withdraw money from your account or cash your cheque and you don't have enough money, they can charge you up to $25 extra. They can only charge this fee once, no matter how many times your cheques bounce.
If you don't pay on time the lender can contact you by phone or in person Monday to Saturday from 7 a.m. to 9 p.m. and on Sundays from 1 p.m. to 5 p.m. They cannot contact you on holidays or more than 3 times a week.
They are not allowed to threaten, bully or harass you.
If they cannot get in touch with you, they may call your friends, family, and employer to find out how to reach you. But the lender is not allowed to discuss any information about your loan with them.