Government of Saskatchewan
Thursday, December 05, 2019
Financial and Consumer Affairs Authority

This section explains your right to cancel a payday loan and the steps you must take to cancel the loan. It also explains what a payday lender must do when a loan is cancelled.

Lenders must advise you of your right to cancel the loan agreement.  Before you enter into a payday loan, the lender must provide you with a form that can be used to cancel the loan.

When You May Cancel

You may cancel your payday loan, without reason or cost, at any time before the end of the business day following the date the payday loan agreement was entered into (usually the next day).

If the payday lender did not notify you of your right to cancel the loan in the written disclosure document provided to you before you entered into the loan, or if the notice you were given was not clear, understandable or prominently displayed in the lender’s disclosure document, you can cancel your payday loan at any time.

What You Must do to Cancel

In order to cancel a payday loan, you must follow two steps: 

  1. You must give written notice of the cancellation to the payday lender by leaving the notice at the address of the payday lender set out in the payday loan agreement with any employee.  The lender is required to provide you with a cancellation form for this purpose.
  2. You must also repay to the payday lender the amount that was advanced to you under the payday loan. You may repay the loan advance in the form of cash, certified cheque or money order.

If the advance was made in the form of a cheque, a return of the un-cashed cheque is considered to be a repayment of the advance.  If the advance was made in the form of a cash card or other device that enabled you to access funds under the payday loan agreement, returning that card or device to the payday lender is to be considered a repayment of the advance to the extent of the cash or credit balance remaining on the card or device.

The payday lender may accept other forms of repayment as well. To determine if another form of repayment will be accepted by the lender, consult the disclosure document the lender provided to you before you entered into the loan or ask the lender.

What the Lender Must Do When You Cancel

If you cancel your payday loan in accordance with the Act, the payday lender must immediately:

  • give you a receipt showing the amount you paid or returned to the payday lender to cancel the loan; and 
  • refund to you in cash all fees, penalties or other amounts you paid to the payday lender in relation to the payday loan.

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