is spring financial legit Or scam? Reviews and complaints

Is Spring Financial Legit? Understanding the Company

When looking for emergency loans or credit repair services, brands like Spring Financial will inevitably come up in searches. However, as with any financial institution, it’s important to verify legitimacy and understand customer experiences before handing over personal details or money. In this comprehensive review, we’ll explore what Spring Financial offers, examine their reputation and policies, and share borrower reviews to help determine if they can be trusted.

An Overview of Spring Financial

Spring Financial is a Canadian company that offers personal loans, credit-building loans, and credit repair services. Founded in 2003 and headquartered in Montreal, Quebec, they claim to help Canadians get out of debt and improve credit scores.

Some key points about Spring Financial:

  • Loans range from $1,000 to $35,000 with terms of 3-60 months and interest rates from 9.95-29.99%.

  • Credit repair packages start at $89/month focused on disputing negative items and building new credit profiles.

  • They state a commitment to responsible lending and aim to “bring people back from the brink of financial disaster.”

  • The company is privately held rather than publicly traded on stock exchanges.

  • Loan eligibility considers credit history but Spring Financial aims to help those rejected elsewhere.

At first glance, Spring Financial appears to fill a valuable niche by assisting subprime borrowers when banks say no. But is their business truly above board? Let’s dig deeper.

Examining Spring Financial Reviews

To better understand customer satisfaction, let’s look at reviews across popular platforms:

Better Business Bureau (BBB)

The BBB gives Spring Financial an “F” rating due to many unresolved complaints around predatory lending, advertising deceit, and failure to deliver on credit repair promises. Of over 780 reviews, half are only one star. The complaints indicate predatory debt traps.


With over 13,000 reviews yielding 4.8 stars, Trustpilot presents a more positive view. Customers praise loan approvals and credit improvements but also warn of high rates and a need for rigorous payment plans. Transparency is lacking per some.


This aggregator uncovers a 0% complaint resolution rating from the BBB alongside many personal stories of interest rate hikes, difficulty cancelling services, and false advertising. Customers feel misled or exploited.


On subreddits discussing loans and personal finance, most advise caution due to signs of predatory behavior from Spring Financial like unexpected rate increases, unwillingness to refinance, and customer service difficulties after signing on the dotted line.

So while Trustpilot reviews are quite positive overall, other indicators point to problematic practices and predatory tactics requiring careful scrutiny before borrowing from Spring Financial. Let’s dig deeper into how they operate.

Examining Spring Financial Lending Policies

Given negative reviews, the onus is on Spring Financial to demonstrate fair and ethical lending. How do their policies stack up?

Interest Rates

Rates start reasonably but can rise to triple digits once late payments occur. Customers report unexpected spikes of 15-30% even when just a few dollars behind. This predatory trapping goes against responsible lending standards.


Hidden fees add to costs, like $25 insufficient fund charges and $45 dishonored payment penalties. Complaints suggest fees surpass loan amounts due to a cycle of interest/penalty stacking. This takes advantage of vulnerable borrowers.

Customer Service

Spring Financial gets poor marks here, accused of aggressive collection methods, failure to work with borrowers during emergencies, and a lack of care or accountability once debts are accrued. Customers see this as predatory indifference.

Refinancing Difficulties

Stories abound of denied refinancing requests to lower rates despite on-time repayment histories just to increase interest profits – the antithesis of building long-term customer relationships through flexibility and good faith.

While helping subprime borrowers access loans, Spring Financial’s policies and practices arguably exploit these customers’ lack of alternative options through aggressive debt traps, non-transparent terms, and unaccommodating flexibility – characteristics unbecoming of an ethically-run company. Their business model profits more from penalizing missed payments than customer success.

Controversies and Lawsuits Facing Spring Financial

If questionable lending isn’t enough, other red flags emerge regarding Spring Financial’s business dealings and regulatory issues:

  • Multiple class-action lawsuits allege predatory lending, misleading advertisements, and illegal debt collection practices.

  • The company was fined over $179,000 by Ontario regulators for deceptive online and radio ads.

  • Spring Financial faced bans and restrictions in multiple provinces for non-compliance with responsible lending standards.

  • Documents show private equity firm alignment sparking concerns the model emphasizes profits over people.

While no company operates perfectly, such a troubled track record erodes confidence in Spring Financial’s treatment of vulnerable customers and raises valid doubts regarding their legitimacy and priorities as a lender people can trust. Regulators have consistently found issues requiring intervention.

The Verdict – Approach Spring Financial Loans With Caution

To summarize, although helping some rebuild credit, Spring Financial also:

  • Has a concerning pattern of regulatory issues and predatory lending accusations per reviews.

  • Traps borrowers in cycles of penalty-fueled interest that rapidly explodes costs through unclear or manipulated terms.

  • Lacks transparency, accountability and flexibility expected of reputable lenders.

  • Primarily profits from punishing missed payments versus partnering in customers’ long-term success.

While personal situations vary, on balance, most fact-based information suggests approaching Spring Financial carefully or exploring safer alternatives first if possible due to an ethically questionable business model. They do not appear to have Canadian borrowers’ best interests at heart based on their record of conduct. Individual circumstances plus due diligence are paramount before committing to any lender, but Spring Financial raises especially serious legitimacy red flags. Know your rights and tread very carefully.

In summary, while helping some, Spring Financial’s many controversies, lawsuits, and predominantly predatory practices painted by reviews imply they should be a last resort versus a reasonable first choice. More customer-focused companies exist for building credit responsibly.

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