Online payday loans have made short-term borrowing available without requiring consumers to visit a physical storefront. A borrower can often complete an application from a computer or mobile device and communicate with the lender electronically. However, the convenience of applying online does not eliminate the need to check the lender, understand the agreement and protect personal information.

Ontario’s payday-loan rules apply to licensed payday lenders, including businesses that provide payday loans remotely. Lenders must comply with requirements under the Payday Loans Act, 2008 and related regulations.

Before submitting an online application, consumers should determine who they are actually dealing with. Ontario advises borrowers to verify that a payday lender is licensed. This is particularly important online because some websites may be lead generators. A lead generator may collect information from people looking for loans and then provide or sell that information to an actual lender. Continue Reading