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Difference between revisions of "Types of Lenders and Creditors"
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Types of Lenders and Creditors (view source)
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=== Pawnbrokers=== | === Pawnbrokers=== | ||
Until April 2002, '''pawnbrokers''' were regulated by the province under the ''Pawnbrokers Act''. Some aspects of the ''[http://canlii.ca/t/8495 Personal Property Security Act]'' (see the section on Security Agreements) also apply to pawn transactions. Currently, however, the most significant regulation of pawnbrokers is found in municipal bylaws, such as Vancouver’s [http://bylaws.vancouver.ca/2807c.PDF Secondhand Dealers and Pawnbrokers By-law] (No. 2807). | Until April 2002, '''pawnbrokers''' were regulated by the province under the ''Pawnbrokers Act''. Some aspects of the ''[http://canlii.ca/t/8495 Personal Property Security Act]'' (see the section on [[Security Agreements]]) also apply to pawn transactions. Currently, however, the most significant regulation of pawnbrokers is found in municipal bylaws, such as Vancouver’s [http://bylaws.vancouver.ca/2807c.PDF Secondhand Dealers and Pawnbrokers By-law] (No. 2807). | ||
A typical client problem with pawnbrokers is when the client cannot repay the amount of the loan, the interest, and the pawn fees to redeem their possession. In some cases, the effective rate of interest — because it includes pawn fees — exceeds the maximum rate of interest of 60% per year set by [https://www.canlii.org/en/ca/laws/stat/rsc-1985-c-c-46/latest/rsc-1985-c-c-46.html#sec347_smooth section 347] of the ''Criminal Code''. Pawnbroking does not fall within the legal exemptions created by payday loan legislation. | A typical client problem with pawnbrokers is when the client cannot repay the amount of the loan, the interest, and the pawn fees to redeem their possession. In some cases, the effective rate of interest — because it includes pawn fees — exceeds the maximum rate of interest of 60% per year set by [https://www.canlii.org/en/ca/laws/stat/rsc-1985-c-c-46/latest/rsc-1985-c-c-46.html#sec347_smooth section 347] of the ''Criminal Code''. Pawnbroking does not fall within the legal exemptions created by payday loan legislation. | ||
