Payday loans in Canada may be regulated by various federal and provincial laws. It is illegal to lend money on a credit basis if the recipient does not qualify as an exempted recipient under the Act. To meet these criteria, payday loans are categorized as direct loans with the exception of a loan that is secured by property or other assets of value that the borrower owns or does not own and in which the lending company has security (like a car or boat). Payday loans are also classified under unsecured loans in contrast to secured loans that are taken on the basis of something tangible. The applicant must provide a post-dated check as collateral for a Canadian payday loan. Payday loans at flexiloans.ca
All You Need To Understand About Payday Loans
Payday loans in Canada can be obtained from one of two sources: a licensed lender or from an unlicensed direct lender. Licensed lenders are registered with Canadian financial institutions like the CMHC and have to pass an ethical standards test. Although licensed lenders are highly regulated by the CRCC, unlicensed direct lenders can operate unprofessionally. Unlicensed direct lenders do not have to register nor meet ethical standards. Consequently, unlicensed direct payday loan lenders can offer payday loans to people who cannot obtain a licensed loan from a conventional lender. Payday loan in Canada can be hard to locate as most of them operate out of state or out of country.
One way of locating a payday loan in Canada lender is searching the internet. Simply type “payday loans Canada” into your search engine browser followed by the state of your intended location. The results will list lenders in the state of your intended location. The advantage of searching online is that you can find both a licensed and unlicensed lender. If the lender you choose does not meet the ethical standards, then you would be better off referring your search to another lender. This will ensure that you receive a quality service.