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Borrower's Rights

Table of Contents

At Mr. Payday, we believe that an informed borrower is a safe borrower. As a licensed direct lender, we adhere to the strict consumer protection laws of British Columbia, Alberta, and Ontario. You have the right to transparent fees, a cooling-off period, and a lending process free from harassment or hidden costs.

Know Your Rights

Payday lending in Canada is regulated at the provincial level. This means your rights can vary depending on where you live. Mr. Payday is fully compliant with the following authorities:

  • The $14 Cap: Lenders cannot charge more than $14 per $100 borrowed.

  • 2-Day Cooling-Off: You can cancel a loan without penalty by the end of the next business day.

  • 50% Net Pay Rule: A lender cannot provide a loan that exceeds 50% of your net pay for the period.

  • No Rollovers: Lenders are strictly prohibited from rolling over a loan into a new one for an additional fee.

  • Collection Rules: Lenders and collection agencies are restricted in how and when they can contact you or your employer.

  • Installment Repayments: Loans in Alberta must be repaid in installments over a period of 42 to 62 days to prevent a “debt trap”.

  • Licence Requirement: All lenders must be registered (BC Licence #50031, Alberta Licence #326997, Ontario Licence #4716300)

Universal Rights You Should Expect from Any Lender

Regardless of your province, every legitimate payday loans provider must honor these fundamental principles:

  1. Right to Transparent Disclosure: You must receive a written agreement that clearly states the total cost of the loan, the APR, and the exact date of repayment.

  2. Right to Privacy: Your personal and banking data must be protected with bank-grade encryption. Mr. Payday uses Instant Bank Verification to ensure your data stays secure.

  3. Protection Against Scams: You should never be asked to pay an “upfront fee” or “insurance” before receiving your loan. Mr. Payday never charges upfront fees for no credit check loans.

  4. No Harassment: You have the right to be treated with dignity. Lenders cannot use threatening language or contact you at unreasonable hours.

Empowering Your Financial Future

While payday loans are a helpful tool for urgent expenses, they are intended for short-term use only. If you are facing long-term debt, we encourage you to use your right to seek help from non-profit resources:

  • Credit Counselling Society: Offering free debt advice across Canada.

  • Financial Consumer Agency of Canada (FCAC): Providing educational resources on payday loan risks and rights.