4. Check your loan agreement

Before you sign a , read it carefully. Make sure you understand what you are agreeing to.

The loan agreement must be in writing. It must be printed in text that is big enough to read easily. Always keep a copy of the agreement for yourself in a safe place.

The loan agreement must tell you:

  • exactly how much you need to repay,
  • that you have a 2-day cooling-off period, which means you can cancel the loan in the 2 days after signing the agreement for any reason and not have to pay any fees,
  • how many days you have to repay the loan, and
  • the “ rate” which is how much interest you will be charged if you don’t repay the loan on time.

Your loan agreement must also include a chart that tells you how much the loan will cost you and when you have to repay it.

Here is a sample chart for a $400 loan made on July 1, 2020. In this example, the cost of borrowing is only $14, instead of the maximum legal amount of $15:

Details of Payday Loan Agreement

Amount Borrowed


Term of the Agreement in Days


Total Cost of Borrowing


Maximum Allowable Cost Per $100 Borrowed


Cost Per $100 Borrowed


Equivalent Annual Percentage Rate


This loan is your third or subsequent one in 63 days and qualifies for an extended payment plan


Payment 1: Amount and Due Date

$456 on July 14, 2018

Payment 2: Amount and Due Date (if applicable)


Payment 3: Amount and Due Date (if applicable)


Default Interest Rate


Borrower’s Signature


What you get

The rules say that as soon as you sign a agreement, the payday lender must give you:

  • a copy of the agreement right away, and
  • the full amount of the money you want to borrow. They can ‘t keep any of the money to cover any fees or charges

The lender must give you the money as soon as you sign the agreement in person, or within one hour if you made the loan agreement online

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