Difference between revisions of "Types of Lenders and Creditors"

'''“Loan shark”''' is the slang term for individuals or businesses that lend money at a very high rate of interest. This kind of lender usually sets harsh repayment terms and may resort to threats or actual harm to the borrower if payments are missed (see the section on [[Harassment]]). Even if payments are made as called for, the borrower may end up owing more than was borrowed because of the high interest charges, which are calculated on a monthly or even weekly basis. Police and media reports indicate that there is a considerable underground credit market from loan sharks. [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'' makes it an offence for someone to lend money at an interest rate exceeding 60% per year (see the section on [[Interest and the Cost of Borrowing Money]]), except [[Payday Loans|payday lenders]] licensed under provincial legislation.