Why does the licence matter?
Only a licensed lender has to follow your province’s cost cap, cancellation rights and collection rules. An unlicensed lender isn’t bound by any of them, and if something goes wrong, your regulator may not be able to help. Licensing doesn’t guarantee good service, but it’s the minimum.
How do I check a licence?
- Find the licence number. Licensed lenders usually show it in the footer of their website, on the contract or on a sign in the store. If you can’t find it, ask.
- Go to your regulator. Use the official site for your province, linked from your province’s page on Koke: Service Alberta, Consumer Protection BC, Ontario’s licence registry, the FCAA in Saskatchewan, FCNB in New Brunswick, and so on.
- Match the details. The legal name, operating name and, for online lenders, the website should match what you’re seeing. Watch for look-alike names.
- Check it covers you. The licence must be in the province where you live, not just where the lender is based, and must be current, not expired or suspended.
What are the warning signs of a fake or unlicensed lender?
- It asks for a fee before sending the loan, whether called insurance, processing or a deposit. Licensed lenders take their fee from the repayment, not up front.
- It asks for your online banking username and password.
- It wants payment in gift cards, cryptocurrency or a wire transfer.
- It promises approval before seeing any of your details.
- It has no physical address in Canada and no licence number.
- It offers a “payday loan” to someone in Quebec or the territories, where payday loans aren’t licensed.
What should I do if I’ve been scammed?
Stop all payments, call your bank to block further debits, and report it to the Canadian Anti-Fraud Centre at 1-888-495-8501 and to your provincial regulator. If you shared banking credentials, change your passwords immediately.