Difference between revisions of "Types of Lenders and Creditors"

Most creditors, including lending institutions and retailers, have fairly sophisticated credit agreements that consumers must accept as part of a credit transaction. These contracts, including promissory notes (enforceable promises to repay a debt or loan) and security agreements, are governed by both the common law of contracts and a range of federal and provincial statutes. It is important to understand, however, that a written agreement is not a requirement for all credit transactions. Credit arrangements with friends, for example, are usually as “legal” as those arranged with credit institutions, as long as there was a general intention that the agreement would be binding on the parties.