Generally, the repayment day is the day of your next paycheck. The repayment amount consists of the loan amount and the interest accrued.
The repayment will be collected by the loan provider by withdrawing the specified amount from your bank account into which you get your wages paid.
Repayment over a longer period
If it turned out for you to be impossible to repay the loan on the specified repayment day, payday loans may be extended by your loan provider. If this is a case, you are recommended to contact you loan provider as soon as possible and clarify circumstances to them. They will inform you about your possible options and how to go about extending your loan.
Even if you are not able to settle the repayment amount in full extend, it is advisable to pay off as much as possible on the repayment date. This will help you to minimize the interest you owe. Some companies may charge additional fees for extending your loan, so, you should check this provision before signing your loan agreement.
Regulation of Payday Loan Companies
Properly regulated payday loan companies must conduct their business with strict compliance to the laws governing the finance industry.
So, it’s highly advisable to check if the company offering the loan is properly regulated. The payday loan company should show its Consumer Credit License number within its loan conditions and it should also be authorized by the Office of Fair Trading. In case you are not sure on the point if the company you want to apply to is fairly regulated, you are entitled to contact any of these bodies for further information.
If the payday loan company you are applying to is properly regulated, there will be a officially recognized body to make any complaints you may have and you can be assured that you will not be subject to any unfair practices.