The patterns to recognise
- An advance fee loan: pay us first and we will approve you. Legitimate lenders deduct fees from the advance.
- A title loan dressed up as a refinance, where you hand over the ownership and the effective rate is enormous.
- Rate baiting: a quoted rate that changes after the credit check, with no written commitment.
- Documents with blank fields, or a signature requested before the terms are filled in.
- A lender who asks you to leave the insurance or registration in someone else name.
- Pressure to sign today or lose the offer.
How to verify a lender
- Check that the business is registered in your province.
- Insist on the annual percentage rate and full fee disclosure in writing.
- Never send money before a contract exists.
- Confirm the payout figure with your current lender directly.
If something has gone wrong
Contact your provincial consumer protection office and your bank. If the loan is secured against the vehicle, act quickly, because the security terms are what create the real risk.
Save thousands
Save thousands by refinancing your vehicle anywhere in Canada.
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Frequently asked questions
A small administration or registration fee can be normal, but it is disclosed before signing. Upfront payment to secure approval is not.
Yes. Title loans pledge the vehicle directly, and default can mean losing it.
Verify provincial registration, ask for written disclosure, and confirm the company address and phone number independently.