What Happens If You Can’t Repay a Payday Loan in Ontario

Missing a payment is stressful. This page explains exactly what happens under Ontario and Saskatchewan rules and what you can do about it.

What AppleTree Cash charges if a payment is returned

• A single $20 NSF fee for each dishonoured payment.
• Interest on any outstanding balance after default accrues at 30% per year, non-compounding, until the balance is paid.
• Your own bank may also charge its own NSF fee.

We do not charge additional collection fees beyond what the law allows.

What we do not do

• We do not offer rollovers, refinances or extensions (these are prohibited by law in Ontario and Saskatchewan).
• We do not send the account to collections on the first missed payment without first attempting to contact you.
• We do not use aggressive or harassing collection practices.

What you should do if you know you will have trouble

1. Contact us as early as possible — before the due date if you can. Email service@appletreecash.com or call 1-888-674-1147.
2. Explain the situation. In many cases we can discuss a realistic payment arrangement.
3. If the hardship is ongoing, consider speaking with a non-profit credit counselling agency. They can help with budgeting and, in some situations, creditor negotiations.

Your cancellation right

You can cancel a payday loan within two business days of signing with no penalty. You simply return the amount you borrowed. After that window the normal terms apply.

Credit impact

A payday loan itself does not usually appear on your credit report when it is paid as agreed. If the account goes into serious default and is sent to collections, it may affect your credit. Paying as arranged or contacting us early is the best way to avoid that outcome.

Related pages

• Responsible Lending Policy
• Exact costs and fees
• Full FAQ
• When a payday loan makes sense