Not all payday loans are scams – there are legitimate lenders that abide by any provincial laws in place and offer financial help to those in need.

However, since payday loans can be extremely expensive, this may be why they’ve acquired a reputation for being scams. On average, you’ll pay $15 to $25 per $100 you borrow, depending on the province you reside in. This calculates out to at least a 3-digit annual percentage interest rate (APR), usually sitting somewhere around the 400% mark.

Payday loans are also notorious for trapping consumers in endless cycles of debt. Since these loans are so expensive, borrowers often have trouble paying them off, often causing them to take out more payday loans to pay off their debts.

With this said, there are payday loan schemes that really are scams. To protect yourself, you’ll need to know what to watch out for.
https://www.finder.com/ca/payday-loan-scams