Can I Cancel My Payday Loan?

Can I Cancel My Payday Loan?

Yes, you can cancel a payday loan by repaying the full amount of the loan plus any fees and interest that may be owed. You may also be able to cancel the loan by contacting your lender and requesting a refund. If you are unable to cancel the loan, you may be able to negotiate with your lender to lower the amount you owe or to extend the terms of your loan. Some lenders may offer a ‘cooling period’ where you have 24 or 48 hours to be able cancel your loan with no payment or interest accrued.

  • The loan will be cancelled if the balance is paid in full
  • You can end your loan at any time, but you may have to pay interest for the number of days that it is active.
  • Some lenders offer up to 48-hour cooling period during which you can cancel the home loan agreement without incurring any fees.
  • You can request your bank to stop payments to a payday lender, but you must also contact the lender directly to close your account. Otherwise, you will still be responsible for paying any remaining interest.

Read more: Payday Loans from Direct Lenders

 

3 step How To Cancel Your Payday Loan

Cancelling your payday loan is simple and straightforward, as long as you are within your rights to do so. Here are the three steps you need to take:

 

Step One: Figure Out If You Are Eligible To Cancel The Loan

The first step is to check if you are actually eligible to cancel the loan. Unfortunately, not everyone will be in a position to do this. The main eligibility criterion is whether or not you have already paid back part of the loan. If you have, then you are not allowed to cancel the loan and will have to continue making repayments until it is fully repaid.

 

Step Two: Choose How You Want To Cancel The Loan

There are two ways to cancel your payday loan: either by repaying the full amount of the loan plus any fees and interest that may be owed, or by contacting your lender and requesting a refund. If you are unable to cancel the loan, you may be able to negotiate with your lender to lower the amount you owe or to extend the terms of your loan. Some lenders may offer a ‘cooling period’ where you have 24 or 48 hours to be able cancel your loan with no payment or interest accrued.

 

Step Three: Take Action and Follow Up

Once you have decided how you want to cancel your payday loan, the next step is to take action and follow up. If you are repaying the loan, make sure you do so as soon as possible to avoid accruing any additional interest or fees. If you are requesting a refund, contact your lender and explain your situation. Be polite but firm, and make sure you follow up to ensure that your refund has been processed.

 

Cancelling your payday loan is a simple process, as long as you are within your rights to do so. Follow the steps outlined above and you will have your loan cancelled in no time.

Read more: Can Payday Loans Garnish Your Wages?


 

Frequently asked questions

Can a Payday Lender Still Charge Me if I Cancel After 1, 5 or few Days?

Cancelling your payday loan after 1, 5 or a few days is still possible but you might have to pay some interest for the number of days that it was open.

It’s also important to note that not all lenders will offer a ‘cooling period’ where you can cancel your loan with no payment or interest accrued. You will need to check with your specific lender to see if this is an option.

Will Cancelling a Payday Loan Impact My Credit Score?

No, cancelling a payday loan will not impact your credit score. However, if you are having difficulty repaying your loan, it is important to contact your lender to discuss your options. If you default on your loan, this will have a negative impact on your credit score.

Defaulting on a payday loan can stay on your credit report for up to 7 years and will make it difficult to get credit in the future.

Can I Get My Bank to Stop Payments to a Payday Loans Company?

Yes, you can ask your bank to stop payments to a payday loan company. However, you must also contact the lender to close your account and request a refund. Otherwise, you will still be required to pay off any interest outstanding.

What Happens if I Don’t Repay My Payday Loan?

If you don’t repay your payday loan, the lender may try to collect the debt through a collections agency. The agency will then report the debt to the credit reporting agencies, which could impact your credit score. Additionally, the lender may take legal action against you to recover the debt.

If you are having difficulty repaying your loan, it is important to contact your lender to discuss your options.