Why can’t I get a payday loan for less than 3 days in Ontario?
In Ontario, payday lenders must provide borrowers with a 2-day cancellation period after signing a payday loan agreement. During this time, customers can cancel the loan without penalty.
Because of these regulations, lenders cannot process pre-authorized debit payments while the cancellation period is still active. In addition, Ontario payday loan rules do not allow lenders to “skip” a scheduled payday repayment date.
To remain compliant with Ontario regulations and ensure that payments are not sent for processing during the cancellation period, payday loans must have a minimum loan term of at least 3 days.
As a result, if your next pay date is 2 days away or less, we may need to wait until your following pay date before issuing a new payday loan.