Is borrowing online any different?
Legally, no. A lender that makes payday loans to people in your province needs a licence there, whether it has stores or only a website, and it must follow the same cost cap, disclosure rules and cancellation rights. In practice, online lending is faster to apply for and harder to check, because a website can look professional whether or not it’s licensed.
How do online lenders check my income?
Many use a bank verification service that reads your recent transactions with your permission, through a secure connection run by a third party. You log in through that service, not by giving your password to the lender. Others ask for pay stubs or a void cheque. A legitimate lender will never ask you to email or text your banking password.
How does e-Transfer funding work?
Once approved and once you’ve signed the contract electronically, the lender sends the money by Interac e-Transfer to the email or phone number you gave. Some lenders deposit directly. Many send funds within an hour or two during business hours; evenings and weekends can be slower, and your bank may hold a first transfer from a new sender.
How do I repay an online payday loan?
Usually by pre-authorized debit from your bank account on the due date. Make sure the date matches your actual payday. If it won’t, tell the lender before signing. A returned debit can cost you a lender fee and a bank NSF fee.
How do I stay safe borrowing online?
- Check the lender’s licence with your provincial regulator before entering personal details.
- Never pay a fee up front to receive a loan.
- Look for “https” and the lender’s real Canadian address.
- Read the electronic contract before signing. It must show the total cost in dollars and the annual rate.
- Keep copies of everything you sign and every payment.
What if I change my mind after signing online?
The same cooling-off rights apply. In Ontario, you can cancel within two business days by telling the lender and returning the money. Do it in writing, by email, so you have a record.