Beware of Fake Lenders Posing as “Loans Canada”
It has come to our attention that certain companies, operating under several names, have been posing as a loan referral service. After a consumer has submitted an application with one of these companies, the applicant will have a specific amount of money debited directly from their bank account. The transaction description may contain the term “Loans Canada” or similar. This has caused a lot of confusion as we operate our business using the URL loanscananda.ca. We want to make it abundantly clear that we are not associated with any of these companies at all, directly or by extension.
Please be advised that the following companies have no affiliation with loanscanada.ca:
- Upper Canada Loans
- Private Lenders
- Private Lenders Canada
- Private Lender Loans
- 7940696 Canada Inc.
A Note on Upfront Fees
We want to make it very clear that we, loanscanada.ca, do not ask our clients for any type of upfront fee, security fee, or insurance fee (read more about loan insurance scams here). This is not only an unethical business practice that greatly affects hard-working Canadians, it is a scam and it is illegal. If any loan company asks you to provide them with a specific amount of money before you are able to gain access to your loan, do not give them the money. If you have already provided them with access to your bank account:
- Get in contact with your bank right away.
- Authorize a complete stop payment on all future withdrawals from the company in question.
- Finally, get in contact with the Canadian Anti-Fraud Centre (CAFC) to report your experience with a fraudulent lender.
Red Flags to Watch Out For
Unfortunately, loan scams are extremely common. For every reputable lender, there is a fraudulent one looking to scam unsuspecting consumers out of their money. One of the best ways to help prevent these scammers from succeeding is to be as informed as possible. Here are some of the most common red flags to look out for:
- The promise of guaranteed approval
- 0% interest rates
- Lenders with no contact information
- Being pressured into making a decision before you’re ready.
- The feeling that it’s too good to be true
- Being asked to transfer money to the lender, before you get your loan, via a prepaid credit card (learn more about prepaid credit card scams) or Western Union transfer.
For more information on how to avoid loan scams, read this article.
The only way we can stop these deceptive companies is through vigilance. No matter what type of company you’re working with, big or small, well established or new, if you have to sign a contract, please always make sure you understand what you are signing.
Again, if you or anyone you know has dealt with this type of fraud, please get in contact with the CAFC right away.