If the offer is too good to be true, that is probably the case.

The Financial and Consumer Affairs Authority is advising anyone looking for a loan to make sure the lender or broker is licensed. Some unlicensed lenders and brokers are promoting “advance-fee loans” online or by email, which require fees to be paid before handing over the loan. It may be called an “administration fee” or “credit protection” to make the charge seen more credible. The FCAA explains the consumer pays the fee and the loan is never transferred and the website often disappears.

Other unlicensed online operations may issue the loans but not provide the true cost of the credit information or may take aggressive collection practices. In Saskatchewan, you can check whether your lender is licensed BY visitING FCAA411 at https://fcaa.gov.sk.ca/fcaa411.