{"id":740558,"date":"2018-07-05T19:47:57","date_gmt":"2018-07-05T23:47:57","guid":{"rendered":"https:\/\/www.finder.com\/ca\/?p=740558"},"modified":"2026-06-01T09:19:31","modified_gmt":"2026-06-01T13:19:31","slug":"payday-loan-scams","status":"publish","type":"post","link":"https:\/\/www.finder.com\/ca\/payday-loans\/payday-loan-scams","title":{"rendered":"Learn About Payday Loan Scams & Compare Legitimate Lenders"},"content":{"rendered":"

If you\u2019re short on cash, you might be considering taking out a payday loan. You may also be wondering: Are payday loans a scam? Let\u2019s take a look at why payday loans have a poor reputation, as well as common scams you should watch out for. Finally, we\u2019ll discuss how you can get a legitimate payday loan from a reputable lender in Canada.<\/p>

Are all payday loans scams?<\/h3>

Not all payday loans are scams \u2014 there are legitimate lenders that abide by the provincial laws that are in place and offer financial help to those in need.<\/p>

However, payday loans can be extremely expensive, which may be why they have acquired a reputation for being scams. You\u2019ll pay $14 for every $100 borrowed, which calculates out to an annual percentage rate (APR) over 300%.<\/p>

The cycle of debt<\/h4>

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.<\/p>

With this said, there are payday loan schemes that really are scams. To protect yourself, you\u2019ll need to know what to watch out for. Jump to list of scams.<\/a><\/p>

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\u26a0\ufe0f Warning: Be cautious with payday loans<\/h5>\nHigh-cost payday loans are unsustainable for long-term use, with up to $14 charged per $100 borrowed. If you're experiencing financial hardship, call Credit Counselling Society<\/a> for free financial counselling (Mon\u2013Fri, 8am\u20135pm at 1-888-527-8999). Also consider payday loan alternatives<\/a>.<\/span>\r\n<\/div>

Which payday loan providers are legitimate?<\/h3>

Here are some trusted payday loans from legitimate lenders to consider.<\/p>
Provider<\/th>Licensed?<\/th>Transparent fees?<\/th>How it\u2019s legit<\/th><\/th><\/tr><\/thead>
\"iCash\"<\/td>Yes<\/strong><\/td>Yes<\/strong><\/td>
  • Canadian Consumer Finance Association (CCFA) member<\/li>
  • Free app available on the Apple App Store and Google Play<\/li>
  • 24\/7 customer support<\/li>
  • Served 1,600,000+ people since 2016<\/li>
  • Fully online payday loans<\/li>
  • 4.7\/5 based on 2,900+ Trustpilot reviews<\/li><\/ul><\/td>
\"Wagepay\"<\/td>Yes<\/strong><\/td>Yes<\/strong><\/td>
  • Licensed payday lender in BC and ON<\/li>
  • Cheaper than industry standards<\/li>
  • Founded in Australia in 2020 then expanded to Canada in 2023<\/li>
  • Has over 330,000 users worldwide<\/li>
  • 3.6\/5 based on 130 Trustpilot reviews<\/li><\/ul><\/td>
\"GoDay\"<\/td>Yes<\/strong><\/td>Yes<\/strong><\/td>
  • CCFA member<\/li>
  • Accredited by the Better Business Bureau with an A- rating<\/li>
  • Over 400 physical branches across Canada<\/li>
  • 4.4\/5 based on 3,700+ Trustpilot reviews<\/li><\/ul><\/td>
\"Cash

\u00a0<\/p><\/td>

Yes<\/strong><\/td>Yes<\/strong><\/td>
  • Founded in 1992<\/li>
  • Served over 1.2 million Canadian customers<\/li>
  • Has an active fraud department<\/li>
  • Mobile app on the Apple App Store and Google Play<\/li>
  • A+ BBB rating<\/li>
  • 4.4\/5 stars based on 7,700+ Trustpilot reviews<\/li><\/ul><\/td>
<\/div>
\"Money<\/td>Yes<\/strong><\/td>Yes<\/strong><\/td>
  • CCFA member<\/li>
  • Site is verified by Entrust, a global leader in data protection<\/li>
  • Over 360 locations across Canada<\/li>
  • Privacy officer and customer support available<\/li>
  • 4.7\/5 based on 6,000+ Trustpilot reviews<\/li><\/ul><\/td>
\"My<\/td>Yes<\/strong><\/td>Yes<\/strong><\/td>
  • CCFA member<\/li>
  • It\u2019s operated by Westrock Financial Ltd., which is BBB-accredited with an A+ rating<\/li>
  • 4.6 rating on Trustpilot based on 1,100+ reviews<\/li>
  • 100% Canadian-owned, established in 2008 in BC<\/li><\/ul><\/td>
\"Pay2Day\"<\/td>Yes<\/strong><\/td>Yes<\/strong><\/td>
  • Has 35 stores across BC, Ontario and Nova Scotia<\/li>
  • 24\/7 approvals, funding and customer support<\/li>
  • Has 4.9\/5 stars based on 8,300+ Trustpilot reviews<\/li><\/ul><\/td>
\"Mr.<\/td>Yes<\/strong><\/td>Yes<\/strong><\/td>
  • Uses secure socket layer technology (SSL) to encrypt your personal information<\/li>
  • Founded in 2002 and has one store location in Vancouver<\/li>
  • Get approved within 30 minutes<\/li>
  • 4.6\/5 based on 1,600+ Trustpilot reviews<\/li><\/ul><\/td>
\"Speedy<\/td>Yes<\/strong><\/td>Yes<\/strong><\/td>
  • Founded in 1998 and has nearly 19 branches across Canada<\/li>
  • Customer service available via live chat 9 am to 4 pm (PST)<\/li>
  • Online loan application available 24\/7<\/li>
  • Over 10,000 customers a month<\/li>
  • 4.4\/5 stars based on 10,000+ Trustpilot reviews<\/li><\/ul><\/td>
\"Loan<\/td>Yes<\/strong><\/td>Yes<\/strong><\/td>
  • Founded in 2005<\/li>
  • Customer service available by phone or email<\/li>
  • Instant approval available 24\/7<\/li>
  • 4.8\/5 rating on Trustpilot based on more than 9,700 reviews<\/li><\/ul><\/td>
\"Cash<\/td>Yes<\/strong><\/td>Yes<\/strong><\/td>
  • CCFA member<\/li>
  • Was founded in 2001 and now has 100+ stores<\/li>
  • Has served millions of Canadians<\/li>
  • 4.9\/5 stars based on 23,000+ Trustpilot reviews<\/li><\/ul><\/td>

Read review<\/a><\/p><\/div><\/td><\/tr><\/tbody><\/table>

Are other payday loan companies legitimate?<\/h3>