When an automatic payment fails and is rejected by your bank, an Unsuccessful Payment Fee is charged to cover the cost Credit Club incurs on the transaction. This could happen if there is insufficient balance in your bank account, the bank account has been closed or if the account is otherwise suspended. The amount of an Unsuccessful Payment Fee varies from $20.00 to $50.00 and you may also incur an overdraft charge from your bank.
EXAMPLE:Understanding the Cost of a Payday Loan Maximum charges permitted in British Columbia for a Payday Loan 14% of Principal
We charge $14 per $100 borrowed For a $300 loan for 14 days: Total cost of borrowing = $42 Annual Percentage Rate = 365%
This information meets the requirements of the Business Practices and Consumer Protection Act
Payday loans are High-Cost Loans
Credit Club is a licensed lender in Nova Scotia. Please review our sample borrowing costs and our Nova Scotia license below.
Maximum Allowable Cost per $100 borrowed
$14
Our cost per $100 borrowed
$14
Example:
Your $300 loan for 14 days
Principal Amount: $300.00
Total Cost of Borrowing: $42.00
Total to Repay: $300.00 + $42.00 = $342.00
Annual Percentage Rate (APR): 365%
The maximum penalty chargeable with respect to a default on a payday loan is $20 per loan.