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Dealers encouraged to be vigilant in light of recent news of auto lender’s pause on automotive credit applications

March 19, 2026
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Last week, it was announced publicly that auto lender LendCare paused all applications for automotive credit applications for their clients. LendCare’s parent company Goeasy (TSX:GSY), indicated that all available efforts to recover late‑stage delinquencies in their auto and powersports have been exhausted.  Lendcare has issued a letter to their partnered dealers assuring them that there will be no impact to previously funded customers.

Auto car loan delinquencies on the rise

Equifax Canada’s Quarterly Consumer Credit Trends report showed a 10.31% increase in the delinquency rate year over year in Ontario (Q4 2025 vs. Q4 2024), suggesting that this may be just the tip of the iceberg in terms of financial troubles facing Ontarians.1

Industry reporting has also pointed to elevated used-vehicle loan delinquencies for certain origination years and borrower segments.2

OMVIC continues to monitor this industry trend

OMVIC continues to monitor developments that may impact consumers and registered dealers. Where appropriate, OMVIC will provide reminders about dealer obligations under the Motor Vehicle Dealers Act, 2002 (MVDA) and related regulations, including requirements related to disclosures, contracts, deposits, and delivery.

What this means for OMVIC registered dealers in Ontario

Dealers should consider how a change in a lender’s financial status can affect consumers.

  • Dealers to exercise enhanced diligence on all active, pending, and recently completed financing loans involving LendCare financed vehicles.
  • Enhanced diligence shall include the monitoring of undischarged liens – by confirming that any existing liens are discharged before a resale / Conduct a lien search prior to delivery of a vehicle
  • Obtain a written confirmation from the lender that funding has been completed, and verify of the lien status through lien search
  • Contact the lender for course of action should there be a wait time for completion of financing agreement where a deposit was taken

If you have questions about your obligations or want to report concerns, contact OMVIC’s Industry Standards & Conduct team at [email protected].

1. Equifax Canada’s Quarterly Consumer Credit Trends report
2. More Canadians want out of crippling car loans amid high financing costs: Debt experts, Yahoo Canada Finance