Personal loans: know your rights

Express consent for a personal loan

Federally regulated financial institutions can only provide you with a loan if they have your express consent. If you give verbal consent, they must provide you with confirmation of your consent, in writing, without delay.

Learn more about giving express consent for financial products and services.

Your right to information about personal loans

Federally regulated financial institutions must provide you with information about your personal loan in a manner, and using language, that is clear, simple and not misleading. The information disclosed depends on the type of loan you get.

Before you sign a loan agreement, take the time to read and understand the terms and conditions. Ask questions if anything is unclear or if you’re not sure about what you’re signing.

Information about fixed rate personal loans

When federally regulated financial institutions issue a fixed rate personal loan, they must disclose certain information.

They must provide this information in a disclosure statement that is:

Certain information must be provided in an information box. It can be at the beginning of your loan agreement or the separate document you receive with it. If you’re dealing with a bank, they must present it in a single prominently displayed information box.

This includes information such as the:

See an example of an information box in a personal loan agreement.

Additional information about fixed rate personal loans

In addition to the information box, federally regulated financial institutions must provide information such as:

Information about variable rate personal loans

When federally regulated financial institutions issue a variable rate personal loan, they must disclose certain information.

They must provide this information in a disclosure statement that is:

Certain information must be provided in an information box. It can be at the beginning of your loan agreement or in the separate document you receive with it. If you’re dealing with a bank, they must present it in a single prominently displayed information box.

The information box must include the same information your lender must disclose for a fixed rate loan, as listed above.

They must also provide:

Additional information about variable rate personal loans

In addition to the information box, your lender must disclose information such as:

For variable rate loans with fixed payments, they must also include the following in the agreement or disclosure document:

Learn more about personal loans.

Display of information about credit agreements

Banks must disclose required information about credit agreements by:

When these rights apply to you

These rights apply when you’re dealing with a federally regulated financial institution like a bank or federal credit union.

Find out if your financial institution is federally regulated.

Learn more about how your banking rights are protected.

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