No Faxing Payday Loans In Canada


no faxing payday loans3 No Faxing Payday Loans In CanadaNo faxing payday loans are a popular option for most Canadian borrowers who want to get their fund request(s) applied for, approved, and in their bank account in lightning speed.

Unfortunately, most all no fax payday loan companies operating in Canada use other ways to have borrowers’ information landing on their desks – waiting for the approval process to be complied with by customer service specialists.

Here we are going to go into some depth on no fax lenders and the processes employed to verify likely borrowers.

Bear with me, as this post gets rather long. Please print it out if you want to finish reading later.

Understanding the Basics of a Faxless Payday Loan

A no fax payday loan is a payday loan whereby the customer/borrower does not have to fax their personal information, employment information, banking information, and identification information, to a lender, before they are approved for what is known as a payday loan or a cash advance.

Why No Fax Payday Loans Are Popular In Modern Consumer Lending

The no fax payday loan is often sought after by borrowers in an effort to speed up the approval and funding process when they apply for cash advances. The reason borrowers are looking for a non-faxing alternative to the conventional payday loan approval process, is usually for two reasons.

no faxing payday loans2 No Faxing Payday Loans In Canada1) The first reason is because borrowers who have had experience using payday loan companies understand the whole process of verification and approval. They understand what the lenders have to go through in order to approve their loan.

They know that they will have to provide their personal and financial documentation (which we will cover further in this piece) to the lender in some fashion – albeit with the use of a fax machine, or the use of scanning equipment and e-mail.

Experienced payday loan customers who don’t have current access to a fax machine will be searching for lenders online that don’t require the use of facsimile-over-phone line transmission.

2) The second reason that some borrowers in Canada and the United States opt in for a faxless payday loan is because they have misconceived what a no faxing payday loan is – in reality.

Some borrowers believe that a non-fax payday loan is one whereby the lender isn’t doing their due diligence as far as borrower identification and Teletrack verification goes, before approving, and then funding the customer’s request into their checking account.

Some of these borrowers believe that they will get their loan transferred into their bank accounts faster if they don’t have to deal with a faxing process and verification hassle. Unfortunately, the reality is that every lender on God’s green earth will be verifying your personal data before going anywhere near an approval, and the subsequent EFT deposit into your account.

There are particular times when borrowers don’t want to have to go down to the local post office, UPS office, FedEx office, public library, school, or family members home to use a fax machine. Let’s face it, the vast majority of consumers and borrowers don’t have fax machines in their homes. This is why payday loan lenders and cash advance companies made the no fax option available to customers – they wanted to encourage more borrowing – not less borrowing.

What Kind of Information is Required to Get a No Faxing Payday Loan

The whole purpose of the fax machine in the early days of payday lending was simply to gather information from the potential borrower/customer in order to verify the their employment status, their personal identification, and of course their chequing account information, including their ABA numbers (Bank Routing Numbers) – BTN  (Branch Transit Number), FIN (Financial Institution Number), and CAN (Chequing Account Number). Please see the image below to understand how this information is pulled from the ABA number on your personal chequing account.

no teletrack payday loan 1500 No Faxing Payday Loans In Canada

However, there is more information than just your financial institutions ABA numbers, and your basic identification. You are also required to provide to the lender;

  • picture ID (drivers license, or social insurance card, or passport (depending on the lender))
  • a valid chequing account (so the lender can EFT (Electronic Funds Transfer) the money into your account, and cash your post-dated cheque at the end of the term)
  • proof of gainful employment and income (your employer pay-stub and/or verified legal bank statement from your branch (i.e. – Royal Bank of Canada, HSBC, CIBC, TD Canada trust, Bank of Montréal))
  • Interact email account with your bank (so the payday lender can into wire your account the short-term cash loan)
  • Paypal account email (there are some lenders that are now using Paypal and similar online payment services as an alternative to wire transfer and direct funds transfer)

More Requirements That Lenders Have for PDL Verification

And here is a list of stipulations and criteria payday lenders will have in covet to approve your loan;

  • you have to have a valid phone number where you can be contacted for the verification process
  • most lenders want to see that you are making at least $1000 a month in gross income
  • borrowers need to be of legal age in their Province or State depending on the localized payday lending laws
  • you have to have at least two months of bank account transactions to prove your eligibility
  • you usually have to be working for the same employer for at least 3 to 4 months
  • you can’t have claimed personal bankruptcy in the last one year (this varies from lender to lender)

no faxing payday loans1 No Faxing Payday Loans In CanadaWithout all of the above information provided to the lender they will not be giving anybody a loan. Don’t be duped by the commercials and the advertising you see on the Internet, and on billboards as you drive down the street – there is always going to be a little bit of a hassle getting approved for a payday loan because the lending companies have to have the above details on your person, and your financial status, before they can even proceed with the smallest of loans.

This is why, in our opinion (BFC staff), the time it takes to get approved using a fax machine can actually be faster than the time it takes to scan your documents, digitally crop your documents, and send them via e-mail to the lender’s office(s).

It’s really just a matter of preference based on the abilities and the technical resources that the borrower has on hand when applying for their loan. Some customers will have no problem figuring out how to use a scanner, and they already have some fairly sophisticated image editing software (such as Adobe Photoshop and Firefox from Macromedia) so that they can handily crop the documents and identification that the payday loan company is requesting.

Some people who don’t have access to this kind of technology, and know-how, find it much easier to simply go down to the local post office and use their fax machine to fire off all of their information with a couple pushes of a button.

What is the Average Principal On No Faxing Payday Loans

One of the biggest misconceptions that some consumers and borrowers have is that getting a no fax payday loan may cost more in fees than the typical faxing payday loan. This is incorrect. The average principal on all payday loans is simply that – there is no difference in the statistics we documented from United States payday loan lending data, and the statistics we documented from Canadian payday loan data. In all cases regarding principal, age of borrowers, gender of borrowers, vocation of borrowers, educational background of borrowers, the applicable fees for every $100 borrowed play out the same.

The median average amount of money borrowed from payday loan companies throughout the United States of America, and across the ten provinces of Canada, is $285 USD, and $265 Canadian respectively. The average length of time (the term) that the money is borrowed for in the United States and Canada is 12 days and 10 days respectively.

Basically, you are not going to get a better deal because the lender uses faxing technology or doesn’t use faxing technology.

What is the Average Effective APR On No Faxing Payday Loans

Believe it or not, we have had people say (in regards to the above statement), “Sure, that is for the basic fees, but isn’t there a difference between the effective APR between no fax loans and fax loans.”

No. There is no difference. Effective APR ranges depending on the dollar amount the lender is charging for every $100 borrowed, and the APR ranges dramatically depending on how long the term is – one week, two weeks, three weeks, four weeks.

It’s basically just simple mathematics that is geared completely, and fixed absolutely, to favor “The House” – “The House” being every payday loan lender in North America.

Some Lenders Provide The Software To Enable Faxless Payday Loans

Some lenders, in an effort to make things easier for their potential borrowers, will provide the software to the customer so that they can easily gather the required information digitally and from the comfort of their own home, and send it quickly from their e-mail account to the lender’s e-mail account. Often these lenders call their software a faxless utility. Sounds pretty fancy, but it’s not.

Understanding the Terms of No Teletrack and Direct Lender Payday Loans

There are a few terms and phrases used within the payday loan industry (borrowers and lenders alike), that we have covered from other areas of our site, so we won’t go into a lot of great detail on them right here. However, we can make you aware of what these kinds of lenders look like.

When you’re looking for a direct lender then you are looking for a lender that actually deposits their money into your bank account. Most lenders online (like BuckForCanucks) are not direct lenders, and we simply provide information and recommendations on where to get payday loans from.

Typically, the latter will have agreements in place with various different legally licensed PDL companies in your area. They will try to set you up with the perfect match for the loan amount and principal fees that you requested in your application. The complete online application and lending process is carried out by the actual lending entity whether it is visible to you are not. This is why the fees can vary so much with the same lender – you don’t know where you’re really getting the money from.

And I hope you are NOT getting multiple payday loans, because it’s the worst kind of small consumer lending instrument you can possibly use in the free world. We go into greater lengths on exactly what a direct lender is, and where you are in the money chain here.

The term “no Teletrack”, is used to describe the type of payday loan whereby the lender doesn’t use the Teletrack service to check your outstanding debts, and credit liability, for the purposes of risk assessment. We go into greater lengths on what a no Teletrack loan is here.

Should I be Getting a Faxing Type PDL Or a No Faxing PDL?

no faxing payday loans4 No Faxing Payday Loans In CanadaWe have been asked by borrowers in the past whether they should get a payday loan that requires faxing, or whether or not it is easier to get a no faxing payday loan.

The answer to this question is very simple……don’t get either one.

You would be surprised to hear that that we discourage people from using payday loans (every chance we get). We often provide detailed information on the payday loan industry in Canada, and the United States, with the same warnings regarding the use of them.

Cash advances, and payday loans, are excruciatingly predatory lending instruments in the small, short-term consumer loan industry. There is no way in getting around this fact. You will see advertisements from payday loan shops and stores in your local towns and cities all across North America offering easy money, and showing the picture of the pretty girl and a handsome young man clutching cash in their hands and jumping in the air for joy because they just got their money.

This is about as deceiving as the commercials showing the pretty young people jumping up and down at the casino by the roulette table when they won the big mother-load bet. When you actually go and see these places in reality you will find out that very few people are that pretty, or jumping up and down – except to go to the ATM machine to withdraw more money to lose, or go to the bathroom. The same with payday lending.

If you could somehow find a way to borrow that $100-$1500 somewhere else then please do it. Except the shame that might come with borrowing money from a family member or friend and avoid using payday loan companies. If you do end up using a payday loan, try not to beat yourself up about it, but instead make sure you never have to use one again. The same goes for pawnshops, check cashing stores, and ATM credit card advances. You are playing with fire. You are playing with predatory APR, and if you don’t know what that means, look it up.

Or stay here on BuckForCanucks and learn more about the payday loan lending industry in Canada and the United States.

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