It's important to know what you’re getting into before applying for a payday loan. There are a number of associations and licences that protect you, the consumer.
When you need money and you need it now, you may be tempted to borrow from the first lender that approves you. But before you do, it’s important to understand the different types of lenders and how the different lender types can affect you, as a consumer.
A direct lender is a lender that both processes your application and funds your loan. These lenders do not broker or sell your information to other lenders.
Cash Money is a direct lender!
A lead generator is a liaison between loan applicants and online lenders. Lead generators often have a network of websites where they collect payday loan applications online. Sometimes these websites can appear to be a direct lender, but they don’t actually lend money. Instead, they sell the applicant’s information to a direct lender that will then process the payday loan application, provide a lending decision, and if approved - fund the loan. To identify if a website or company is a loan broker, look for the small print that typically says something along the lines of "the operator of this website is not a lender" or "match you with a lender".
There are a number of lender associations and licences that protect you as a consumer. This section covers the major associations and types of licences that you will want to look for when considering a lender. While this list identifies some of the major lender associations, it does not identify all of them.
Canadian Consumer Finance Association
The Canadian Consumer Finance Association (CCFA) is a national trade association the represents the majority of licenced payday lenders in Canada. The CCFA works to promote laws and regulations that balance consumer protections while providing access to short-term credit. CCFA members adhere to a strict Code of Best Business practices, and ensure Customers understand the cost and risk of short-term payday loans. It is a condition of membership in the CCFA that each member follow the Code of Best Business practices and make an annual pledge to do so. Lenders that are CCFA members will typically display the CCFA logo prominently on their website.
Cash Money is a proud member of CCFA!
Province Licenced Lenders
Each province has its consumer protection laws that apply to payday loans and regulated lenders. These laws regulate how much you can borrow, the fees you are charged and the "cool-off" period. A lender that is licenced in a province simply means that – they are licenced to lend in that province and abide by its regulations. These lenders are required to apply, register and remain compliant in all provinces in which they are licenced. Lenders licenced in a province undergo regular audits to ensure compliance with the province’s regulations.
Before applying for a payday loan, check to see that the lender that you are dealing with is licenced to operate in your province. Licences are prominently displayed before starting an application online, are typically displayed on rates and terms web pages on a lender’s website, or prominently displayed in the store.
Cash Money is licenced in every province we lend in!