{"id":7341,"date":"2022-06-26T09:00:25","date_gmt":"2022-06-26T13:00:25","guid":{"rendered":"https:\/\/goday.ca\/blog\/?p=7341"},"modified":"2022-06-26T19:25:09","modified_gmt":"2022-06-26T23:25:09","slug":"ontario-paydayloans-fact-fiction","status":"publish","type":"post","link":"https:\/\/goday.ca\/blog\/ontario-paydayloans-fact-fiction\/","title":{"rendered":"Ontario Payday Loans: Get the Facts Now"},"content":{"rendered":"
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Ontario payday loans are often wrapped in misconceptions. Just because a few lenders are disreputable, it certainly doesn\u2019t mean all payday loan lenders and all payday loans are bad.<\/p>\n\n\n\n

Certainly, Ontario payday loans fill a void in the lending market. Many people can\u2019t qualify for other loans. Either that, or their financial institutions don\u2019t bother with small amounts. They believe this need is best met with credit cards or a line of credit. Of course, this doesn\u2019t help someone who has neither.<\/p>\n\n\n\n

Consequently, this article focuses on both the misinformation you\u2019ll read about Ontario payday loans and the facts. Once you\u2019re armed with accurate information, you can make your own decision on whether one is right for you.<\/p>\n\n\n\n

#1 Ontario Payday Loans Are All the Same<\/h2>\n\n\n\n

This certainly isn\u2019t true. Each lender decides on what financial products they will offer. They also decide how much they will charge for their specific loans.<\/p>\n\n\n\n

Like any other product you might consider, some Ontario payday loans are better than others. Equally, you can choose from many lenders. Some are good and others you\u2019ll want to avoid.<\/p>\n\n\n\n

Due to a few unscrupulous lenders, Ontario payday loans have come under greater scrutiny. Luckily, this can benefit you. The market is highly-competitive and good payday loan lenders are willing to go further to prove their worth.<\/p>\n\n\n\n

As a result, you can find highly-professional, reputable lenders with a proven track record of delivering quality service and loans. They join industry groups to stay on top of legislative changes and obtain accreditation through organizations such as the Better Business Bureau.<\/p>\n\n\n\n

#2 Payday Loan Lenders Can Do Whatever They Want<\/h2>\n\n\n\n

This could be the case, if you choose the wrong lender. As mentioned, Ontario payday loans garnered plenty of attention due to the inappropriate behaviours of a few bad lenders. Consequently, the Ontario government established payday loan licensing and the Payday Loans Act.<\/p>\n\n\n\n

All lenders in Ontario, whether operating in-person or online, are required to have a payday loan license. The Ontario Ministry of Government and Consumer Services issues the licenses and it is easy to check whether a company has one here<\/a>.<\/p>\n\n\n\n

This is extremely important, because some online companies operate illegally. They don\u2019t want to deal with government oversight as it is very detailed, rigid, and demanding. If you do choose an unlicensed lender, you could get yourself into a very bad situation for several reasons.<\/p>\n\n\n\n

First, the Government of Ontario and Canada warn against using unlicensed lenders, because it might be a scam. Second, you won\u2019t enjoy consumer protection laws. Finally, unlicensed lenders can handle your Ontario payday loan in pretty much any way they choose. They can charge very high interest rates, open-ended fees, and use illegal collection methods.<\/p>\n\n\n\n

Conversely, licensed lenders must follow the Payday Loans Act<\/a>. This Act describes everything from how a lender can collect money to the methods available to resolve disputes. Perhaps most importantly, the Act also limits which fees and how much interest the lender can charge.<\/p>\n\n\n\n

#3 Ontario Payday Loans Are Easy to Get<\/h2>\n\n\n\n

Usually, this is true. However, payday loans do have specific requirements. While they\u2019re aren\u2019t normally as demanding as other loan types, a reputable lender will never guarantee 100% approval. The lender will want to know you have the means to repay.<\/p>\n\n\n\n

The legal limit for Ontario payday loans is 50% of the previous month\u2019s average payroll amount, up to a maximum of $1,500. Nonetheless, some lenders do not grant the full amount if it is your first time working with their company.<\/p>\n\n\n\n

As mentioned, every lender has their own criteria regarding qualifications. However, you will find most lenders want you to meet at least the following basic requirements:<\/p>\n\n\n\n