Understanding Payday Loan Contracts: 3 Terms Involved With Cancelling the Loan Agreement

When you need cash quickly, there's no better way to get the money that you need than through a payday loan company. You don't need good credit or to go through lengthy application processes. All you need is to have proof of employment and a stable income. In fact, over 12 million Americans rely on payday loans every year to get them out of financial woes. With that said, before agreeing to the loan contract, you need to understand what the cancellation policy of each company is. Here are three terms that you need to pay particular attention to. 

The Length of Time After Loan Approval Allowed for Cancellation With No Fee

In the event that you get a loan, but then later realize that you don't need it for whatever reason, you want to make sure that you're not stuck with the loan and having to pay interest on the money borrowed. Most payday loan companies will allow you to cancel the loan and your contract with them within a certain amount of days of receiving the money or within a certain amount of days after the loan has been approved. If you are able to return the money in full during this time, you can cancel the loan with no penalty.

Whether Cancellation Is Allowed If Funds Are Not Received Within a Certain Time Frame

Most Americans rely on payday loans because they need the money within a short time frame. While most payday loan companies can get you the funds that you need within the day, unexpected events do happen. Confirm that the contract allows you to cancel a loan in the event that you do not receive the funds before a certain amount of time.

The Procedures Involved With Submitting a Cancellation

Cancelling a loan can be as easy as calling the payday loan company or it might require extra steps like filling in some paperwork. Before signing the loan agreement, make sure you fully understand what the procedures involved with cancelling a loan may be. You also want to consider whether there are any fees or charges associated with cancelling the loan. For example, if you have to fill in paperwork, determine whether you will be charged a processing fee.

Carefully scour through the entire contract before signing it to confirm that you fully understand all of the terms and conditions involved with taking out the payday loan. In particular, you want to figure out what is the cancellation policy enforced by each payday loan company. If you have more questions, speak with lenders like Payday Express.