Avoiding Scams

How to Verify a Legitimate Payday Lender in Ontario

To stay safe, follow these steps before applying:

• Check the license: Search for licensed lenders
• Look for clear contact info on the website (address, business name)
• Read the loan terms before signing anything
• Never send money upfront
• Trust your gut —if something feels off, it probably is

What to Do If You’ve Been Scammed

• Stop communication immediately
• Contact your bank to block suspicious withdrawals
• Report the scam to:
  • Consumer Protection Ontario: 1-800-889-9768
  • Canadian Anti-Fraud Centre: antifraudcentre-centreantifraude.ca
• Check your credit report for unusual activity
• Consider placing a fraud alert or credit freeze if needed

Common Payday Loan Scams

1. Upfront Payment Scams

Scammers ask for money before delivering a loan—claiming it’s for "insurance" or "processing fees".

Red flag: Legitimate payday lenders never require upfront fees.

2. Unlicensed Lenders

Scammers may offer loans online via email or fake websites without proper licensing.

Red flag: Always verify a lender is licensed here.

3. High-Pressure Tactics

Scammers may pressure you to act quickly or threaten to revoke an offer.

Red flag: Real lenders give you time to review the terms. You have 2 business days to cancel a payday loan penalty-free.

4. Requests for Sensitive Info Too Early

Fraudsters may ask for SIN, banking login, or ID too soon.

Red flag: Never share personal info without verifying the lender’s legitimacy.

5. Impersonating Real Lenders

They might mimic names, branding, or websites of real lenders.

Red flag: Double-check URLs and call the official number from the company’s site.

6. No Clear Loan Terms

Lenders must provide:

• Loan amount
• Repayment amount
• Fees and due date
• Cancellation policy

Red flag: If they avoid giving clear details, walk away.