I can’t repay my payday loan. What should I do?

If you can’t repay a on time, it’s best to talk to the payday lender. Try to work out a new payment plan. But the lender isn’t allowed to give you a new loan until the first one is paid off.

If you’re not able to work out a new payment plan, the payday lender can:

  • charge for the time after the loan was due, which can be up to 2.5% per month
  • add other late fees and charges to your loan
  • send your file to a , which will affect your and make it harder to get loans in the future
  • sue you in Small Claims Court

Rules about contacting you

Most payday loans are paid back in a single payment. If you miss the payment, your loan is in . The payday lender may contact you by phone, or in person.

Payday lenders are only allowed to contact you Monday to Saturday from 7 am to 9 pm, and Sunday from 1 pm to 5 pm. They aren’t allowed to contact you on statutory holidays. They also aren’t allowed to contact you more than 3 times during any 7-day period.

Payday lenders aren’t allowed to threaten you or swear at you. They aren’t allowed to bully you into paying or harass you.

If the payday lender can’t get in touch with you, they may call your friends, family, and employer to find out how to reach you. But they aren’t allowed to ask these people anything else or give them any information about your loan.

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