How to spot a loan scam

Fake lenders go after people who need money quickly, because someone in a hurry is less likely to check. According to the Canadian Anti-Fraud Centre, fraudulent loan websites are built to look like real lenders. Their applications collect your personal information, which can lead to identity theft, and after a quick approval they ask for money to secure the loan. The loan never arrives.

Warning signs

Stop and check before going further if a lender:

• Asks you to send money to get or secure the loan. The Anti-Fraud Centre's advice is never to send money first.
• Wants payment by email money transfer, through a money service business or with prepaid cards. The Anti-Fraud Centre says to end all contact if a company asks for this.
• Guarantees you a loan before looking at your application, or promises instant approval
• Pushes you to decide right away, or won't show you the rate, fees and payment dates in writing
• Asks for your online banking password, or for a code sent to your phone, by email, text or a call

How to check a lender

1. Look up the company

   Search its name with words like "scam" or "complaints", and check that its website address is spelled correctly. Fake sites often copy a real lender's name and design.

2. Ask your province

   If you're not sure, the Anti-Fraud Centre recommends contacting your provincial consumer protection agency or financial regulator to confirm that a company is a legitimate lender.

3. Read the offer in writing

   A real lender shows you the amount, the annual percentage rate, every fee and every payment date before you sign. See what an installment loan costs for what to look for.

How Urgent Loans works

• Applying through Urgent Loans is free. We don't ask you for money.
• Urgent Loans is not a lender. A lender in our network that can help contacts you directly with its offer, and nothing is final until you sign its contract.
• A lender may verify your bank account online. That check gives the lender a read-only view of recent transactions. It never gives anyone your banking password or the ability to move money.

If someone contacts you claiming to be from Urgent Loans and asks for money, it isn't us. Tell us through our contact form.

If you think you've been scammed

1. Call your bank or credit union

   Use the number on your card or statement. Tell them what happened, especially if you sent money or shared banking details.

2. Contact your local police

   The Anti-Fraud Centre says victims should contact local police as soon as possible. Police investigate the case.

3. Report it to the Anti-Fraud Centre

   You can report fraud online, even if you didn't lose money. Reports help link cases together.

4. Watch for identity theft

   If you gave out personal details, check your bank statements and your credit report over the next few months for anything you don't recognize.

More on what to try when money is short is on our emergency loans page.

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Urgent Loans is not a lender. Each lender in our network sets its own terms and makes its own decision. See how it works.