LendCare, a lender based in Pickering, Ontario, claims to assist customers with significant or unexpected expenses. Their website states, "Whether it’s buying braces for your child’s teeth, having emergency auto repairs done, or getting your pet potentially lifesaving medication, LendCare has your back." However, as Canadians grapple with rising prices and unemployment, many are turning to high-cost loans, sometimes with interest rates exceeding 30 percent. An investigation has revealed that LendCare is allegedly collaborating with unscrupulous businesses that exploit vulnerable borrowers through scams and deceptive contracts.

Since 2017, over 70 lawsuits have been filed against LendCare from various locations, including Vancouver and Saint John. Customers claim that merchants using LendCare financing have burdened them with overwhelming debt through deceptive practices and the sale of defective products. Additionally, numerous complaints have been lodged with consumer protection agencies across multiple provinces. While many lawsuits are still pending or have not reached trial, Quebec courts have ruled against LendCare’s merchant partners in ten cases related to poor deals involving home appliances and vehicles. LendCare itself was found liable in five instances, with one judge in Montreal stating that a business offering LendCare financing operated a pyramid scheme.

Government officials have also scrutinized LendCare and its partners. In August, Alberta’s Director of Fair Trading ordered the lender to stop engaging in misleading business practices regarding payment schedules and cancellation rights, imposing a fine of $1,500. In Ontario, where most lawsuits have been filed, officials have considered stricter regulations for alternative financial service providers like LendCare, although no action has been taken by the provincial government.

Holly Unruh, a spokesperson for LendCare’s parent company, Goeasy, stated, "Any suggestion that LendCare has been helping prey on vulnerable borrowers with scams or exploitative contracts is untrue and unfounded." She did not comment on specific cases but emphasized LendCare's commitment to responsible lending and transparent financing agreements. Unruh noted that LendCare has terminated over 40 merchant partnerships in the past six months due to unmet standards.

One former customer, Patricia Binder from Ottawa, is among 20 seniors who have filed lawsuits alleging they were scammed by sellers of home equipment financed through LendCare. In 2024, Binder sued several businesses involved in the schemes and reached a settlement with LendCare. She expressed her distress, saying, "I don’t even answer the door anymore. There are too many people out there looking to take advantage of the elderly."

LendCare offers point-of-sale financing, where customers enter a credit agreement when purchasing a product from a merchant. The lender pays the seller, and the customer repays LendCare over time, including interest and fees. In July, reports surfaced about Ontario cosmetics stores allegedly pressuring customers into signing high-cost LendCare loans without understanding the terms. Some customers claimed their signatures were forged on contracts.

A total of 67 lawsuits have been filed across several provinces, with allegations of misleading or fraudulent agreements. In 11 cases, customers reported forgery, while 34 lawsuits involved claims of defective goods or poor services financed through LendCare. Many customers found themselves unable to cancel deals after realizing they had been misled.

In several cases, LendCare denied responsibility for the actions of its merchant partners, asserting the validity of its credit agreements. However, courts have rejected this defense in four cases, including one in Nova Scotia where LendCare was the plaintiff against a borrower who attempted to cancel a deceptive contract.

Binder's lawsuit highlights her experience with LendCare. In 2018, workers arrived at her home to install products they claimed were part of a contract she had signed. However, Binder, who was 86 at the time of filing her lawsuit, did not recall signing any agreement. LendCare later claimed she owed over $17,000 through a credit agreement for products she alleged were never installed. After paying more than $10,000, Binder stopped payments, asserting the contract was void.

Another couple, Vittorio and Ascenza Palmieri, aged 82 and 78, also fell victim to similar schemes involving LendCare financing for attic insulation. They alleged that a salesperson misled them about energy savings and government rebates that never materialized, resulting in a contract exceeding $7,000.

John Baldassarra, a principal broker at Money Mart, emphasized the importance of vetting merchants involved in conditional sales contracts. He stated, "You have to make sure it’s a legitimate corporation... We also have to make sure they have the proper insurances in place, there are no regulatory issues or any customer complaints."

Unruh stated that LendCare conducts thorough due diligence on potential merchant partners and monitors them under a compliance framework. She also mentioned that LendCare is not involved in the manufacturing or sale of products financed through its loans. Regarding allegations of forgery, she asserted that LendCare has strict identity verification processes in place.

In Quebec, officials have cracked down on a door-to-door seller offering LendCare financing after receiving multiple complaints. The seller operated a multi-level marketing scheme, which is illegal in the province. A Montreal resident, Mackendy Chery, reported that he was unaware he was applying for a loan and subsequently sued, resulting in a court order for a refund and cancellation of the contracts. However, he shared evidence that LendCare continued to withdraw funds from his account despite the ruling. Last year, Quebec banned financing agreements made during door-to-door sales, aiming to protect consumers from deceptive practices.