Loans
How to Spot a Loan Scam
The warning signs of fake lenders, what real lenders never ask for, and what to do if you have been targeted.
What are the warning signs?
Upfront fees, guaranteed approval regardless of credit, instant approval, and requests to pay by gift card, prepaid card or e-transfer.
Scammers often copy the names and logos of real lenders. Go to the lender’s website yourself rather than following a link from a message.
Put it into practiceOnline lenders and loan search servicesWhat does a real lender do?
A real lender checks your credit and income, gives you a written agreement with the APR and total cost, and takes payments after the loan is paid out.
Loan search services are free to you; they are paid by lenders.
How can I check a lender?
Confirm the company’s legal name and licence in your province, and search for complaints.
Federally regulated banks are listed by the Office of the Superintendent of Financial Institutions; provincial regulators license consumer and payday lenders.
What if I’ve been scammed?
Stop contact, contact your bank, and report it to the Canadian Anti-Fraud Centre and your local police.
Keep reading
LoansLoans with Bad Credit in CanadaWho lends to people with poor or no credit, what it costs, and safer ways to borrow or rebuild.
BankingWhat to Do If Your Credit Card Is Used Fraudulently in CanadaSpotted charges you didn’t make? Call your card issuer right away, then report the fraud. Your liability is capped by law at $50, and the major networks say you won’t pay anything for unauthorized charges.- LoansPersonal Loan Rates in CanadaTypical personal loan rates at banks, credit unions and online lenders, why your rate differs from the advertised one, and how to get a lower rate.
LoansHow Much Does a Personal Loan Cost?Worked examples showing how the rate and the term change your monthly payment and total interest, plus the fees to watch for.
Official sources and further reading
Terms vary by product. Confirm the provider’s current terms before acting. This guide does not predict approval, realized value or credit-score changes. How WalletReturn calculates value