Borrowing safely: Canada.

A take-home sheet for people at the session. Other countries: United States · United Kingdom · Australia.

Moraph for Good · Fluent

Borrowing safely: Canada

Handout · moraph.org/commons/sessions/fluent/borrowing-safely

The cost of a loan is everything you pay back, not the monthly payment. This sheet has the questions to ask before you borrow and where to get free help where you live.

Three questions for any lender

What is the yearly rate including fees?
What is the total I will pay back?
What happens if I pay late or early?

Warning signs

Pressure to sign today
No questions about whether you can afford it
A fee before you get the loan, which is often a scam
A lender that wants to keep your ID or bank card

Cheaper options to ask about

Small loans from credit unions or community lenders
A payment plan with the company you owe
Free, not-for-profit debt advice

If you’re struggling

Contact the lender before you miss a payment
Complain in writing, and keep copies
Use the official routes below if it isn’t resolved

In Canada

Payday lenders are licensed by province. Each province sets its own payday loan rules, and payday lenders must have a licence there; the territories don’t have specific rules. Your provincial or territorial consumer affairs office can tell you whether a lender is licensed.
Rollovers and wages. In most provinces a payday lender can’t extend or roll over your loan. Provincial laws stop payday lenders asking you to sign a form that transfers your wages directly to them.
Lenders outside Canada. The Financial Consumer Agency of Canada warns that problems with online payday lenders based outside Canada may be difficult to resolve.
A fee first is a warning sign. The Canadian Anti-Fraud Centre says it is illegal for a company to ask you to pay a fee upfront before it gives you a loan.
Complaints. The Financial Consumer Agency of Canada explains how to complain to a federally regulated financial institution, starting with the institution’s own complaint process, and where to go next.

Official places to check:

Financial Consumer Agency of Canada: www.canada.ca/en/financial-consumer-agency/services/loans/payday-loans.html
Financial Consumer Agency of Canada: www.canada.ca/en/financial-consumer-agency/services/complaints.html
Canadian Anti-Fraud Centre: antifraudcentre-centreantifraude.ca/protect-protegez-eng.htm

General information, not advice about your own situation. Checked 19 October 2026. If an official source says something different, it is right. Free to copy and adapt. moraph.org/commons/sessions/fluent/borrowing-safely