Can You Get A Payday Loan In Manitoba?
If you’re a resident of Manitoba and need access to fast cash, a payday loan may be an option. These short-term loans are available in Manitoba and provide small loans up to $1,500 to help you cover a variety of urgent expenses.
Loan terms can be as little as a couple of weeks to no more than 62 days, which means you’ll need to come up with the money to repay the loan, plus interest, within a very short period of time.
Payday loans are very easy to qualify for. You can get approved even with bad credit. Approval decisions are made very quickly, and the funds are typically available within the same business day.
Licensed Payday Lenders In Manitoba: Find A Payday Lender Near You
Several payday lenders are available in Manitoba, but many are not licensed in the province. In Manitoba, a license is required for each location where payday loans are provided to consumers.
As such, it’s recommended that you only work with a payday lender that has the necessary licensing required to operate in the province. To find out if a payday lender is licensed in Manitoba, you can check their website or storefront for a license number.
Some licensed payday lenders operate entirely online and must also comply with the same provincial regulations.
Here are a few licensed payday lenders to help you get a head start on your search:
Physical Storefront Lenders:
- Cash Money – 29 10th St Suite P, Brandon, MB R7A 4E3
- Money Mart – 300 Mystery Lake Rd #1320, Thompson, MB R8N 0M2
Online Lenders
Types Of Payday Loans You Can Get In Manitoba
You can apply for payday loans in person by visiting a payday lender’s physical storefront, but there are other variations that make applying for this short-term loan easier and more convenient:
Online Payday Loans
You can apply for a payday loan online on a lender’s website. The entire application and funding process takes place virtually without the need to visit a brick-and-mortar location. The funds will typically be sent to you via direct deposit shortly after approval.
E-transfer Payday Loans
Some payday lenders fund via e-transfer. As long as you have an active email address, you can access your borrowed funds within a few minutes after being approved.
Weekend Payday Loans
Some lenders don’t work on weekends, which means if you apply for a payday loan outside of business hours, you’ll need to wait until opening time on Monday morning to get your money. But weekend payday lenders operate 7 days a week, including on weekends, which means you can get your money any day of the week.
What Are The Requirements For A Payday Loan In Manitoba?
To be eligible for a payday loan in Manitoba, you’ll need to meet the following criteria:
- Be 18 years old or older
- Be a Canadian citizen or permanent resident
- Have a valid address
- Have a reliable source of income
- Have an active bank account in Canada that can receive direct deposits
- Have an active email address to receive e-transfers
Different lenders may have slightly varied criteria, so it’s important to verify the exact requirements with your payday lender before applying.
How To Calculate The Cost Of A Payday Loan In Manitoba?
Every province has its own regulations surrounding maximum charges on payday loans, and in Manitoba, payday lenders cannot charge any more than $14 per $100 borrowed.
To help you understand how much a payday loan could cost you, let’s illustrate using a few examples:
| Loan Amount | Cost To Borrow | Total Loan Cost |
| $100 | $14 | $114 |
| $200 | $28 | $228 |
| $300 | $42 | $342 |
| $400 | $56 | $456 |
| $500 | $70 | $570 |
| $1,000 | $140 | $1,140 |
| $1,500 | $210 | $1,710 |
Other Costs To Consider When Getting A Payday Loan In Manitoba
Other costs you should consider when getting a payday loan in Manitoba are the potential fees you may be charged due to missed or late payments. This may include late penalty fees, NSF fees and overdraft fees. For example, in Manitoba, lenders cannot charge more than $20 for a returned cheque.
What Rights Do Borrowers Have When Taking Out A Payday Loan In Manitoba?
Borrowers in Manitoba have several rights when taking out a payday loan, which are protected under Payday Loan Regulations and regulated by the Consumer Protection Office. These rules are meant to protect consumers from unfair practices from lenders.
The following are rules that payday lenders in Manitoba must adhere to:
| Loan Amounts | Up to $1,500 |
| Loan Terms | No longer than 62 days without being renewed or extended |
| Limit On Fees | Maximum fee of $14 per $100 borrowed, and no other hidden fees allowed |
| Cooling-Off Period | Cancel a payday loan within 48 hours of signing the contract without incurring penalty fees |
| Rollovers | Rollovers allowed, but with limits to how much lenders can charge |
| Disclosures | All fees, the total cost to borrow, the interest rate, and the repayment due date must be shown on the loan contract |
| Lender Licensing | All Manitoba payday lenders must have an official business license approved by the provincial government |
| Default Consequences | – NSF fee – Up to 2.5% of default amount |
What Happens If You Don’t Repay Your Payday Loan In Manitoba?
If you miss your payday loan due date, you could face certain repercussions, such as penalty fees, extra interest, or NSF fees. If after these extra charges you still don’t repay your loan, you could face more serious consequences, such as having your loan sold to collections or potential litigation.
Having said that, payday lenders still have to follow certain regulations when it comes to how they deal with missed payday payments in Manitoba:
Maximum Penalty Fees
The maximum penalty that may be charged by a payday lender due to default is 2.5% of the default amount. This penalty may be charged only once in a 30-day period.
Maximum NSF Fees
Payday lenders may charge up to $20 in NSF fees for non-sufficient funds.
Collection Agency Rules
Payday lenders can refer your unpaid payday loan debt to a collection agency, who will then take over efforts to collect the amount overdue. If this happens, it will be noted on your credit report and your credit score will take a hit.
However, collection agencies must comply with specific rules about how they contact you. For instance, collection agencies must not call you outside of specific hours of the day or on holidays. They’re also not allowed to use threatening language or harass you or your family in any way.
To learn more about what collection agencies can and cannot do, visit Manitoba’s Collection Practices website.
How To File A Complaint Against A Payday Lender In Manitoba
If you think you’ve been mistreated by a payday lender in Manitoba, you can submit a complaint to the Consumer Protection Office.
| By Mail | Consumer Protection Office 302-258 Portage Avenue Winnipeg, MB R3C 0B6 |
| By Telephone | Winnipeg and area: 204-945-3800 Toll-free in Manitoba: 1-800-782-0067 |
| By email | consumers@gov.mb.ca |
Risks Of Payday Loans
- Scammers – The payday lending space is a common playground for scammers. When taking out a payday loan, ensure that the lender is reputable.
- Loan rollovers – If you roll over your loan, there’s a greater chance you’ll get stuck into a cycle of debt.
When Should You Use A Payday Loan In Manitoba?
Because of the massive financial hardship they can cause for Manitoban borrowers, payday loans should only be used when you:
- Have no other option (you don’t qualify for credit cards, other loan products, etc.)
- Have a dire financial emergency on your hands (no money for rent, food or other necessary living expenses, etc.)
- Are absolutely certain that you can afford to pay your loan in full, with interest, by the end of your first two-week payment period
How To Spot An Illegitimate Payday Loan Lender In Manitoba?
For theoretical purposes, let’s say you’ve exhausted all your other options and a payday loan is your last resort. It’s very important to realize that not all of these organizations are legitimate. While some payday loan sources are simply predatory in nature, others are actually scam artists trying to steal your financial and personal information.
- They have no reputation to examine. When you’re applying for any credit product in Manitoba, it’s essential to do prior research. Make sure they’re a legitimate enterprise by checking customer reviews and looking up their company in the Better Business Bureau database. Most payday loan lenders will also have a physical location you can visit to confirm their legitimacy or report to the authorities if you’re mistreated.
- They try to manipulate you. While every salesperson has their method of sweet-talking you into buying their merchandise, be very careful when it comes to payday loans or any product that requires your banking information. If it seems like the salesperson is pressing you for your information, but telling you very little about the supposed loan, don’t give them anything.
- They won’t let you walk away or they use abusive tactics. Remember, scam artists are sneaky. They may even threaten you or use inappropriate language to scare you into handing over your information or to get you to pay what you owe. If this happens, report them immediately and don’t give them anything else.
Alternatives To Payday Loans In Manitoba
You may find a payday loan useful if you’re in need of urgent cash and don’t have the time or the criteria to secure a traditional personal loan. But payday loans come with major drawbacks, which is why you may want to consider other options first before resorting to a payday loan.
Government Assistance Programs
Provincial and federal government programs are available to assist Manitoba residents who are financially struggling:
| Employment and Income Assistance (EIA) | Learn More |
| 55 PLUS Program | Learn More |
| Manitoba Housing | Learn More |
| Manitoba Rent Assist | Learn More |
| Compassionate Care Benefits | Learn More |
| Employment Insurance (EI) | Learn More |
| Old Age Security (OAS) | Learn More |
| Guaranteed Income Supplement (GIS) | Learn More |
Debt Relief Programs For Payday Loans In Manitoba
In Manitoba, you have several options for relief of your payday loan debt. These programs are designed to help you manage, reduce, or even eliminate your debt:
| Credit Counselling Services | Learn More |
| Debt Consolidation | Learn More |
| Debt Management Plans (DMP) | Learn More |
| Consumer Proposal | Learn More |
| Bankruptcy | Learn More |
Other Ways To Get Quick Cash
If you’re in urgent need of money, consider the following payday loan alternatives:
Credit Card Cash Advances
If you already have a credit card, you may be able to withdraw cash from your account to access fast cash. This essentially involves borrowing against your credit card limit. You’ll be charged interest on the amount withdrawn immediately.
Car Title Loans
If you own a car outright (with no outstanding car loan), you can use an auto title loan to borrow money. This loan type is secured against your car’s title. Loan terms are longer than payday loans, and the money can be paid back in installments.
Personal Loans
A personal loan gives you a lump sum of money and is paid back through installments over a much longer loan term than payday loans. You can borrow up to $50,000, and interest rates are usually a lot lower.
Small Credit Lines
You can access small lines of credit with minimal approval criteria to get access to fast cash. A couple of options include:
- Nyble: Nyble provides small, interest-free lines of credit for up to $250, You can use this credit line to both access fast cash and build healthy credit with timely payments.
- Bree: Bree offers short-term, interest-free cash advances of up to $500 as a way to avoid bank overdraft fees. You don’t have to undergo a credit check and there are no mandatory fees.
Payday Loans In Manitoba
What do you need to get a payday loan in Manitoba?
Is a payday loan better than taking a cash advance on my credit card?
What is the legal interest rate for payday loans in Manitoba?
Does applying for a payday loan affect my credit rating?
