How to Check That a Lender Is Licensed in Canada

You can confirm a lender is licensed by finding the provincial regulator for your province and searching its public licensing register for the lender's legal name and licence number. A licence that is active and covers your province is your main protection against illegal or high-cost lending.

Why checking a licence matters

In every province with a payday lending regime, and for most consumer credit, a lender must hold a licence from a provincial regulator. Borrowing from an unlicensed lender can leave you outside the protections of provincial law: the cap on the cost of borrowing, cancellation and cooling-off rights, limits on rollovers and collection practices, and a clear route to complain. Checking a licence takes a few minutes, is free, and is the single most useful step before you sign anything.

Step 1: Identify the regulator for your province or territory

Licensing is provincial, not federal. The federal Criminal Interest Rate Regulations set a national ceiling of $14 per $100 borrowed for payday loans, but the regulator that issues licences is the province or territory where you live. For example, Ontario lenders are licensed by Consumer Protection Ontario, British Columbia lenders by Consumer Protection BC, and Quebec money lenders by the Office de la protection du consommateur.

Step 2: Open the public licensing register

Most regulators publish a searchable register of active licensees. Search the lender's legal or trade name, not just the website brand, because online brands are often operated by a differently named company. If the register has a licence-type filter, choose the payday lender or money lender category.

What the register will and will not tell you

A licence confirms that the lender is authorised to do business in that province and is subject to its rules. It is not a quality rating or an endorsement, and it does not guarantee that a loan is affordable. Always read the agreement and compare the total cost of borrowing with other options before you sign.

Step 3: Match the legal name and licence number

Confirm that the name on the register matches the name on the loan agreement and that the licence is current. A licence is usually issued per location, so a company licensed in one province is not automatically licensed in another. Out-of-province and online lenders must still be licensed to lend to residents of your province.

Step 4: Check the licence is active and covers online lending

A licence that is suspended, expired or cancelled is not valid. If you are borrowing online, confirm the lender is authorised for online or remote lending. Provincial law generally requires the licence number to appear on the lender's website and in the loan agreement.

Step 5: Confirm the licence number appears on your agreement

Before signing, check that the loan agreement shows the lender's licence number, the total cost of borrowing, the payment schedule and the due date. If any of these are missing, or if the cost exceeds the provincial and federal limits, do not sign and report the lender.

Step 6: If the lender is not licensed, report it

Unlicensed lending may be an offence under provincial consumer protection law and, where the interest exceeds the criminal rate, under the Criminal Code. Contact your provincial regulator or consumer affairs office with the lender's name, website and any documents. In provinces with a designated payday regime, an unlicensed lender cannot rely on the payday loan exemption, so any high-cost loan may breach the 35% criminal rate of interest.

Quick checklist before you borrow

• Find the lender's legal name and licence number.
• Search the regulator's public register and confirm the licence is active.
• Confirm the licence covers the province and the online channel you are using.
• Check the agreement shows the licence number, total cost of borrowing and due date.
• Compare the cost with a credit card cash advance, overdraft protection or a line of credit.
• Report any unlicensed or rule-breaking lender to the regulator.

Sources

This guide links to the licensing registers and consumer protection regulators published by each provincial and territorial government. Licensing requirements and register links can change, so always confirm the current information on the official regulator's website before you borrow.