If you’re short on cash, you might be considering taking out a payday loan. You may also be wondering: Are payday loans a scam? Let’s take a look at why payday loans have a poor reputation, as well as common scams you should watch out for. Finally, we’ll discuss how you can get a legitimate payday loan from a reputable lender in Canada.
Are all payday loans scams?
Not all payday loans are scams — there are legitimate lenders that abide by the provincial laws that are in place and offer financial help to those in need.
However, payday loans can be extremely expensive, which may be why they have acquired a reputation for being scams. You’ll pay $14 for every $100 borrowed, which calculates out to an annual percentage rate (APR) over 300%.
The cycle of debt
Payday loans are also notorious for trapping consumers in endless cycles of debt. Since these loans are so expensive, borrowers often have trouble paying them off, causing them to take out more payday loans to pay off their debts.
With this said, there are payday loan schemes that really are scams. To protect yourself, you’ll need to know what to watch out for. Jump to list of scams.
⚠️ Warning: Be cautious with payday loans
High-cost payday loans are unsustainable for long-term borrowing, with up to $14 charged per $100 borrowed. If you're experiencing financial hardship, consider calling Credit Counselling Canada for free financial counselling (Monday-Friday 8:00am-5:00pm at +1 866-398-5999). You may also want to consider payday loan alternatives.
Which payday loan providers are legitimate?
Here are some trusted payday loans from legitimate lenders to consider.
Provider
Licensed?
Transparent fees?
How it’s legit
Yes
Yes
Canadian Consumer Finance Association (CCFA) member
Free app available on the Apple App Store and Google Play
We can’t sign off on its legitimacy. Payday Hero is registered in Quebec, but it gives inconsistent loan information on its website, and there aren’t many Payday Hero reviews online. Compare other legitimate payday loan lenders.
This information is accurate as of December 17, 2025.
This information is accurate as of December 17, 2025.
Cashkrab.com appears to be a legitimate company. Cashkrab.com advertises lines of credit of up to $2,500. We like that its website is well-developed, displays contact information, has a privacy policy and clearly outlines Cashkrab loan fees. We’ve verified that it’s registered with British Columbia’s public directory of organizations. That said, there are very few verified Cashkrab reviews online, and they’re all fairly negative. Compare other legitimate payday loan lenders.
This information is accurate as of December 17, 2025.
We’re not signing off on Prestige Payday Loan’s legitimacy. We like that it shows its website terms and conditions; however, there’s no office address or phone number listed, and the website itself is underdeveloped. We also don’t like that Prestige Payday Loan offers payday loans of up to $2,000, which is higher than the $1,500 government-imposed legal limit on payday loans across most of Canada.
Prestige Payday Loan also advertises a high Trustpilot score, but only has 3.1/5 based on 7 reviews on Trustpilot’s site. Finally, we didn’t find it in the Ontario, Alberta, BC, Nova Scotia or Canada business registries. We did find a listing in the Québec enterprise register, but we’re still not signing off on it because of the other red flags. Compare legitimate alternatives.
This information is accurate as of December 17, 2025.
We can’t sign off on Givemecashtogo.ca’s legitimacy. The company’s website has a phone number, email, address, privacy policy and terms and conditions. However, it also says Give Me Cash To Go is a licensed payday lender, yet doesn’t list its licence number anywhere. We also couldn’t find Givemecashtogo.ca’s business registration in the Ontario, Alberta, BC, Nova Scotia, Québec or Canada business registries. However, there are some positive Give Me Cash To Go reviews on Google Maps from borrowers saying they received good customer support and quick funds. Compare legitimate payday loan lenders here.
This information is accurate as of December 17, 2025.
We can’t sign off on StarPay Loans’ legitimacy. We like that it provides its loan terms, rates, amounts and an email address; however, there’s no StarPay Loans phone number, office address, privacy policy or terms and conditions, and the website is somewhat underdeveloped. Also, we couldn’t find StarPay Loans Canada in any business registries. That said, StarPay reviews are generally positive, with the company holding a 4.5/5 rating on Trustpilot based on 1,400+ reviews. Compare legitimate alternatives.
This information is accurate as of December 17, 2025.
We’re not signing off on Cash Supply’s legitimacy. While it does provide an email address and details about Cash Supply loans on its website, there’s no office address, phone number, privacy policy, terms and conditions or licensing information available. We also couldn’t find an active Cash Supply licence in the business registries for BC, Ontario, Alberta, Nova Scotia, Québec or Canada. Compare legitimate alternatives.
This information is accurate as of December 17, 2025.
Money Direct is a licensed payday lender in BC and Nova Scotia, but its Ontario licence expired in June 2025 and hasn’t been renewed yet. Compare legitimate alternatives.
This information is accurate as of December 17, 2025.
We’re not signing off on its legitimacy. It’s not a payday lender but a platform that connects borrowers with third-party lenders. However, its website states approval is guaranteed in some places, which is often a sign of a payday loan scam. And the website is run by a company called Payday Ventures Limited, which is registered in the UK, not Canada. Learn more in our Viva Payday Loans review.
This information is accurate as of December 17, 2025.
We’re not signing off on its legitimacy. Its website has a phone number, email, address and privacy policy, and it’s a registered business in Nova Scotia. However, it has no payday licence listed and charges an APR of 546%. Payday lenders can only charge $14 per $100 borrowed, which typically equates to a maximum APR of 365%. Learn more in our Cash One review.
This information is accurate as of December 17, 2025.
We’re not prepared to sign off on Loonie Financial’s legitimacy. On the positive side, the website lists a phone number, email, physical address in Quebec, terms of service and privacy policy. We also found an active registration number for the company in Quebec’s business registry.
But the website shows customer reviews from Ontario, BC and Nova Scotia, and we couldn’t find Loonie Financial in the business registries for any of these provinces. The company also advertises loans of up to $2,000, which is higher than the federally-mandated limit of $1,500 on payday loans that applies across most of Canada.
At the time of writing, there are only three Loonie Financial reviews on Trustpilot and they’re all negative, stating the company overcharges and offers poor customer service.
This information is accurate as of December 17, 2025.
ECash2Go confusingly advertises payday loans but claims on the same webpage that it’s not a payday loan provider because its loan terms exceed 62 days, and it therefore doesn’t need a payday licence in any province. When we checked, we couldn’t find any active registrations in the Canada, Ontario, BC, Nova Scotia or Quebec business registries.
The company’s website lists an email (but no ECash2Go phone number), privacy policy and specific loan features like the maximum APR, loan amount and term length, and there are plenty of positive ECash2Go reviews on Trustpilot. However, you should be very cautious with ECash2Go as payday lenders must legally be registered in any province in which they operate.
This information is accurate as of December 17, 2025.
Simple Pret appears to be actively registered with the Quebec business registrar. The website lists an email address, loan amount, term lengths and APR range, but it lacks some of the details you’d expect from an established business website, like a physical address, phone number, privacy policy and terms of service.
However, there are plenty of positive Simple Pret reviews, as the company has a rating of 4.9/5 on Trustpilot based on over 2,600 reviews.
This information is accurate as of December 17, 2025.
We’re not signing off on its legitimacy. iLowns’ website states it’s not a payday lender, but we also couldn’t find a business registration in any province. The iLowns Canada website also claims iLowns isn’t regulated by provincial consumer protection authorities. There’s no iLowns contact number either, just an email, and there are no iLowns reviews online. Compare legitimate alternatives.
This information is accurate as of December 17, 2025.
Express Cash has plenty of positive Express Cash reviews on Trustpilot, with the company earning a 4.8/5 score. However, we couldn’t find a business registration, phone number or physical address.
That said, Express Cash doesn’t claim to be a payday lender and clearly states its loan terms. Compare legitimate alternatives.
This information is accurate as of December 17, 2025.
Send Me Cash Now’s website lists its phone number, email address, Quebec office address, privacy policy, and terms and conditions, which are signs of a legitimate lender. It also has a verified Google profile. However, we couldn’t find a registration in the Quebec database. Compare legitimate alternatives.
This information is accurate as of December 17, 2025.
We’re not signing off on its legitimacy. We couldn’t find a business registration in Canada, and it doesn’t display any Avena Wise loan information, such as terms and rates. There are no Avena Wise reviews online at the time of writing, though the website lists a phone number, terms and conditions and privacy policy. Compare legitimate alternatives.
This information is accurate as of December 17, 2025.
Loansmypayroll.com doesn’t claim to be a payday lender, as it offers loans of up to $2,000 with repayment terms of up to 90 days. Its website has a phone number and privacy policy, but no further information about its interest rates. We also couldn’t find a business registration. That said, there are over 500 Loans My Payroll reviews on Trustpilot, earning the company a 4.8/5. Compare legitimate alternatives.
This information is accurate as of December 17, 2025.
We’re not signing off on its legitimacy. Although there are over 1,700 Diamond Loans reviews on Trustpilot with a 4.5/5 rating, the company has been issued a cease and desist under Ontario’s Payday Loans Act, 2008, as it is acting as a payday lender without a licence. Compare legitimate alternatives.
This information is accurate as of December 17, 2025.
My Canada Payday is a licensed payday lender. The company clearly displays its payday licences for BC, Ontario, Alberta, Nova Scotia, Saskatchewan and Manitoba on its website. There are plenty of positive My Canada Payday reviews on Trustpilot as well, with the company rated 4.5/5. Learn more in our My Canada Payday review.
This information is accurate as of December 17, 2025.
We’re not prepared to sign off on its legitimacy. EasyAdvance.ca says it’s a loan brokerage service rather than a direct payday lender, but it doesn’t provide any information on its website about its lender network. The website displays loan rates and terms as well as a physical address, terms and conditions and privacy policy, but there are also no reviews for EasyAdvance.ca, and we couldn’t find a business registration. Compare legitimate alternatives.
This information is accurate as of December 17, 2025.
Kingcash displays its phone number, Toronto office address and email address, as well as its terms and conditions and privacy policy. Kingcash offers installment loans rather than payday loans, so it doesn’t need a payday licence. But we couldn’t find the company listed in the Ontario Business Registry despite its headquarters being in Toronto. That being said, Kingcash reviews on Trustpilot are generally positive, with the company earning a 4.5/5 based on over 1,200 reviews. Compare legitimate alternatives.
This information is accurate as of December 17, 2025.
We’re not signing off on its legitimacy. HeyDay Loans claims to be a licensed lender, but it doesn’t have its licence number posted anywhere on its website, and we couldn’t find a business registration. There’s no contact information or physical address listed either, but a privacy policy and terms and conditions are available. HeyDay Loans reviews are generally positive on Trustpilot, with the company earning a 4.0/5 rating, though some borrowers said they received no response to inquiries. Learn more in our HeyDay Loans review.
This information is accurate as of December 17, 2025.
We’re not signing off on its legitimacy. Alter Cash doesn’t claim to be a payday lender since its loan term is 90–180 days, so it has no payday licence. It’s not registered as a business in any province either, but its website is well-developed with detailed loan information, a privacy policy and terms and conditions, just no contact information. At the time of writing, there are no Alter Cash reviews online. Compare legitimate alternatives.
This information is accurate as of December 17, 2025.
We’re not signing off on its legitimacy. Payday Expert is a loan broker, rather than a direct payday lender, but it doesn’t disclose who its third-party lenders are and whether they’re licensed. It also claims to provide payday loans up to $2,500, which is higher than the $1,500 government-imposed legal limit. There are no Payday Expert reviews at the time of writing, but the website lists a physical address, terms and conditions and a privacy policy. Compare legitimate alternatives.
This information is accurate as of December 17, 2025.
NotchUp is a licensed payday lender with its BC payday licence clearly displayed on its website. NotchUp loans’ information is also readily available. Learn more in our NotchUp review.
This information is accurate as of December 17, 2025.
We’re not prepared to sign off on its legitimacy. I Need My Money Today advertises payday loans but doesn’t have a payday licence listed anywhere. The company has a 3.8/5 based on 13 I Need My Money Today reviews on Google Maps, with some borrowers saying they were approved and never received their funds. Compare legitimate alternatives.
This information is accurate as of December 17, 2025.
Get My Pay Today advertises payday loans but doesn’t have a payday licence number displayed. It has a 3.9/5 based on 11 Get My Pay Today reviews on Google Maps. Some borrowers say they had a good experience and fast funding, while others say they were approved yet never received funding. Compare legitimate alternatives.
This information is accurate as of December 17, 2025.
Accord Pret seems legit, but it’s not a payday lender, only offering loans of up to $1,000. It’s registered with the Québec enterprise register, clearly lists its loan details, and has terms and conditions and a physical address. However, there are only 3 Accord Pret reviews on Trustpilot, giving the company a 2.9/5, with one borrower saying they were overcharged, so read your contract if you decide to proceed with this lender. Compare legitimate alternatives.
This information is accurate as of December 17, 2025.
Credit 2 Go offers payday loans but has no payday licence displayed. Its website is also underdeveloped with no contact information, address, privacy policy or terms and conditions. And, Credit 2 Go reviews on Trustpilot say borrowers didn’t receive their money, giving the company a 2.4/5 rating. Compare legitimate alternatives.
This information is accurate as of December 17, 2025.
Kwik Kred isn’t a payday lender, offering only bad credit loans, unsecured personal loans and auto loans, but we couldn’t find a Quebec business registration, despite having a Quebec address on its website. Its website is also underdeveloped with no loan information, privacy policy or terms and conditions, though it does have an address, phone number and email. Compare legitimate alternatives.
This information is accurate as of December 17, 2025.
Loan and Go doesn’t claim to be a payday lender as it only offers loans up to $1,250 with loan terms of 3–6 months. It’s listed on the Ontario Business Registry, but it has been inactive since 2022, which means a company is no longer operating or hasn’t fulfilled certain legal or regulatory obligations to maintain active status. There’s also only one negative Loan and Go review on Trustpilot, giving the company a 3.2/5 rating. Compare legitimate alternatives.
This information is accurate as of December 17, 2025.
Speedy Paid Loans states it’s not a payday lender because it offers terms up to 90 days, so it doesn’t need a payday licence. It’s not registered in any province and has no physical address or contact information, but Speedy Paid Loans reviews are generally positive with the company scoring a 4.8/5 rating on Trustpilot. Compare legitimate alternatives.
This information is accurate as of December 17, 2025.
How payday loan scams work and how to avoid them
Like many financial industries, the payday loan industry has scammers who prey on people desperately seeking money. Most scams revolve around consumers unwittingly giving out sensitive information or sending money to unscrupulous individuals.
Here are three common payday loan scams and how to avoid them:
The scam: Charging an upfront fee
How it works: A company posing as a payday loan lender will guarantee you a loan if you pay an upfront fee first. The company may ask for the money to be sent as a wire transfer, money order, gift card or in some other form that will be hard for you to get back once sent. After the company receives the upfront fee, they’ll disappear without giving you the loan they promised.
How to protect yourself: To avoid this scam, don’t give any money to a lender to get a loan. Legitimate payday lenders don’t charge fees before you’re approved for a loan. Any one-time fees for establishing the loan should only be charged after you’re approved and you have received your funds. Also, be wary of guaranteed offers. A legitimate lender cannot guarantee a loan without assessing your full application.
The scam: Payday loan collection
How it works: In this common payday loan scam, someone will call you claiming to be a debt collector. They may threaten you with legal action or arrest if you don’t pay. The caller may also have your personal details — your bank account number, for instance, or even your Social Insurance Number. Having this information doesn’t mean the call is legitimate. More likely, it means that someone else sold your information to a third party.
How to protect yourself: Don’t give out any personal information through unsolicited calls, and don’t send money to anybody claiming to be a payday loan collector. If you do currently have a loan, call your lender directly to verify the terms of repayment.
The scam: Fake online form
How it works: In this scam, you’re asked to fill out an online form to receive a payday loan. After you’ve entered your bank account information, the operators of the website won’t actually extend a loan to you. Instead, they’ll enroll you in some type of membership program that will take money from your bank account.
How to protect yourself: To avoid falling prey to this type of scam, thoroughly research any payday loan provider you’re thinking about using. Additionally, read all of the fine print to make sure you understand the terms and conditions.
How to protect yourself from a payday loan scam
Compare multiple payday loan providers. It may be difficult to gauge the legitimacy of one payday loan website by itself, but you may be able to spot red flags when you look at multiple websites and draw comparisons between them.
Look for information and reviews online. Negative information (or even a lack of information) online can point to a payday loan scam. Always check for contact information and head office locations.
Be wary of unsolicited phone calls. Don’t accept a payday loan offer over the phone — there’s probably a better deal elsewhere. Additionally, there’s no way you can verify the legitimacy of the caller.
Understand the laws governing payday loans in your province. Knowing the payday loan regulations in your province will help you gauge whether a payday loan operator is legitimate or simply trying to scam you.
Check the lender’s licence. Under provincial Payday Loans Acts, payday lending businesses must obtain valid payday loan licences. Legitimate lenders will prominently display their provincial licences on their websites and as a prompt before borrowers proceed with their applications.
Be wary of offers that are too good to be true. Examples include guaranteed approval, low rates for bad credit and no credit checks. Keep in mind that no credit checks can be a red flag, but there are also legitimate lenders who don’t do credit checks. In such cases, they’ll focus on your income to determine your eligibility.
Must read: What to do if you've been scammed
Sometimes it can be hard to tell a scam from the real thing. If you think you’ve been scammed, there are steps you can take to protect your personal information and your money from being stolen. Consider the following:
Contact the police. Your local police should have a non-emergency number you can call when you know you’ve been scammed. File a police report to legitimize the situation. Your bank and credit bureau will want to see that you’ve taken this action, so it’s an important first step.
Report the lender to your provincial consumer protection agency. Contact your provincial consumer affairs agency (For example, Consumer Protection Ontario or FCSC in New Brunswick) to report the lender. You can typically call or email your complaint to the agency.
Contact your bank. Since even legitimate lenders will ask for your bank account information, you may have given this to a scammer. Even if they haven’t stolen anything from your account yet, putting your bank on alert will help them track your account for any unusual activity.
Contact Service Canada. If you’ve given out your Social Insurance Number to a scam artist, you’ll need to contact Service Canada as soon as possible to prevent identity theft.
Contact the two credit bureaus. They can put a freeze on your credit report in case any suspicious queries pop up. This will help prevent future damage from scammers trying to use your credit to buy expensive items.
These steps might not be able to get you your money back, but they’ll help you protect your identity. The best way to prevent a scam is to know what one looks like, so familiarize yourself with this guide to know what to avoid in the future.
Finder survey: How many payday loans did Canadians of different ages get between May and July 2023?
Response
Gen Z
Gen Y
Gen X
Baby Boomers
0
69.32%
69.53%
84.23%
90.57%
1
19.89%
19.11%
8.83%
2.52%
2
7.39%
5.82%
4.1%
4.4%
3
1.7%
4.16%
2.21%
1.26%
4 and over
1.7%
1.39%
0.63%
1.26%
Source: Finder survey by Pollfish of 1013 Canadians, August 2023
Look at these factors before taking out a payday loan
The fine print. Before taking out a loan, you’ll need to agree to a lender’s terms and conditions. Take your time to read the fine print before agreeing to anything. If there’s anything you don’t understand or don’t agree with, don’t be afraid to ask questions or look elsewhere for a loan. You’re not obligated to sign a loan contract.
The interest rate. A reputable lender will tell you a loan’s interest rate up front. Once you know the rate, you can calculate how much you’ll pay in interest. Consider your budget, including your income and expenses, and think about your ability to repay the loan.
Fees. Make sure you understand any fees you’ll pay to take out a loan. Some lenders add hidden fees to their loans, so confirm the total amount you’ll pay before agreeing to anything. For example, some payday loans may come with fees for loading funds onto prepaid debit cards.
Since payday loans can be very expensive, it’s a good idea to consider your alternatives. Even if you need cash right away, a payday loan isn’t your only option.
Other options include:
Instalment loans.An instalment loan is a type of personal loan offered by online lenders with lower APRs and longer repayment terms than payday loans. Instead of making one lump sum payment, you’ll make repayments in instalments over a set period of time.
Lines of credit. With a line of credit, you can borrow up to a limit and pay interest on the amount you borrow. It’s a decent payday loan alternative because of its open term.
Bad credit personal loans.Those with a credit score below 560 can apply for and possibly receive a bad credit loan to be paid back in instalments over time. This is a decent payday loan alternative due to its lower APRs and longer terms.
Debt consolidation.Consolidating your debt reduces the confusion of having multiple payments and may even offer a lower monthly payment while you eliminate your debt. You could save on interest and pay off your debt faster.
Cash advance apps.Cash advance apps like Bree and Nyble allow you to access a portion of your earned wages before payday, often with no interest and flexible repayment terms. These apps can help cover unexpected expenses without taking on a traditional payday loan, but they typically only offer $20–$750.
Bottom line
There are plenty of legitimate payday loan providers in Canada, but there are also many disreputable companies in the industry. Be sure to do your research and thoroughly compare your options for a payday loan before applying.
Frequently asked questions
Look at the payday loan provider's website to see if it's built out and clearly shows contact information (like a phone number, email and physical address), loan terms and fees. Make sure the lender abides by all payday loan regulations, like not exceeding the maximum legal payday loan amount of $1,500.
It's also important to check if the lender has a payday licence and a registered business licence in your province. Lenders are required to clearly display their payday licence, but you can start your search for a lender's business licence through Canada's Business Registries. Also, ensure your loan contract is in the same language you used to communicate with your lender.
Although there are many legitimate and reputable payday loan providers, payday loans are known to be incredibly expensive. Since APRs are over 300%, it's a good idea to investigate other financing options before choosing a payday loan.
Payday loans are usually borrowed for a very short period of time. As the name implies, a payday loan is typically due when you receive your next pay cheque from work. Because of this, lenders want to make a substantial profit from each loan, so they charge excruciatingly high interest rates and fees.
Start by contacting a reputable credit counsellor. They'll help you fix the structural issues that led to your debt. You may even find ways to gather savings right away to help you avoid taking out a payday loan.
Sources
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To make sure you get accurate and helpful information, this guide has been edited by
Stacie Hurst
as part of our
fact-checking process.
Carmen Chai is a freelance writer at Finder, specializing in financial products. She is an award-winning Canadian journalist who has lived and reported from major cities such as Vancouver, Toronto, London and Paris. She has reported on personal finance, mortgages, and banking products for nearly a decade.
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Chelsey Hurst is a publisher at Finder, specializing in banking and investments. She loves empowering people to avoid financial pitfalls and make better decisions with their money. Chelsey has a Bachelor of Science from Redeemer University, a Master of Science from McMaster University, and has won multiple awards for research communication. In her spare time, Chelsey enjoys cooking and taking long walks in nature.
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