New Brunswickers seeking a payday loan are being reminded about the dangers of working with an unlicensed lender.

The Financial and Consumer Services Commission (FCNB) recently launched a new educational campaign.

Alaina Nicholson, director of consumer affairs, said more people may be turning to payday loans with the rising cost of living.

“When searching for payday lenders online, consumers run the risk of working with unlicensed payday lenders who don’t follow the rules,” Nicholson said in a news release.

All payday lenders in New Brunswick — whether they have a physical location or are only offering loans online — must be licensed by FCNB.

Consumers can check FCNB’s website to see if the payday lender they want to deal with is licensed.

Working with unlicensed payday lenders can put you at risk of intimidating collection practices and aggressive communication methods such as harassing friends, family or employers, said the release.

“FCNB has received consumer complaints that unlicensed payday lenders have contacted them at their place of employment or contacted their employer when they fall behind in their payments, this is against the law,” said Nicholson.

New Brunswickers who have been harassed by payday lenders are encouraged to report it to FCNB, the Canadian Anti-Fraud Centre and their local police.

FCNB said New Brunswickers should also consider other options available for short-term borrowing situations and ensure they understand the cost of borrowing before agreeing to a payday loan.