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Difference between revisions of "Types of Lenders and Creditors"
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Types of Lenders and Creditors (view source)
Revision as of 02:33, 5 September 2018
, 02:33, 5 September 2018no edit summary
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=== Regulation of creditors=== | === Regulation of creditors=== | ||
All institutional lenders are incorporated under and regulated by specific statutes; for example, the federal | All institutional lenders are incorporated under and regulated by specific statutes; for example, the federal [http://canlii.ca/t/7vqm ''Bank Act''] governs banks and the provincial [http://canlii.ca/t/84hb ''Credit Union Incorporation Act''] governs credit unions. | ||
For each of these statutes there is usually a government regulatory agency. These agencies protect the public interest by ensuring that businesses are run in an appropriate manner, but they do not usually resolve individual complaints or problems between a borrower and lender. | For each of these statutes there is usually a government regulatory agency. These agencies protect the public interest by ensuring that businesses are run in an appropriate manner, but they do not usually resolve individual complaints or problems between a borrower and lender. | ||
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=== Loan sharks=== | === Loan sharks=== | ||
'''“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. [[Section 347https://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 lenders licensed under provincial legislation. | '''“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. [[Section 347https://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 lenders licensed under provincial legislation. | ||
=== Mortgage brokers=== | === Mortgage brokers=== | ||
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* Mortgages and Foreclosure
| * Mortgages and Foreclosure
| ||
See also “[https://www.nomoredebts.org/debt-help/dealing-with-creditors/communicating-with-creditors-and-collection-agencies.html How to Communicate with Creditors & Collection Agencies]” from the Credit Counselling Society, the chapter “[https://www.clicklaw.bc.ca/resource/1727 Creditors’ Remedies and Debtors’ Assistance]” from the manual used by the UBC Law Students’ Legal Advice Program, and the People’s Law School pages on [https://www.peopleslawschool.ca/everyday-legal-problems/money/borrowing- | See also “[https://www.nomoredebts.org/debt-help/dealing-with-creditors/communicating-with-creditors-and-collection-agencies.html How to Communicate with Creditors & Collection Agencies]” from the Credit Counselling Society, the chapter “[https://www.clicklaw.bc.ca/resource/1727 Creditors’ Remedies and Debtors’ Assistance]” from the manual used by the UBC Law Students’ Legal Advice Program, and the People’s Law School pages on [https://www.peopleslawschool.ca/everyday-legal-problems/money-debt/borrowing-money]. | ||
{{Consumer and Debt Law Navbox|type = debt}} | {{Consumer and Debt Law Navbox|type = debt}} | ||