subject: Bad Credit Loans Loan In Canada Clarification Of Bad Credit Payday Loans Part Forty Six [print this page] Borrowers of bad credit payday loans need to know that when they apply and are granted their loan they are actually completing a credit transaction. Many borrowers do not understand the legal implications of the credit transaction they are getting into when they are granted their bad credit payday loan. This means that borrowers do not know what the law states if they are not financially capable of repaying their bad credit loan, as contracted, be it their final payment or one of their regular loan payments. What people need to know is that if they do default on their bad credit payday loans in any way and for any reason they are not actually committing a crime. That being said all payday loans are secured by a post dated cheque that the borrower gives to the lender as their final payment. The lender cashes the cheque when the borrower informs them that the cash is available in the account to meet the final bad credit loan payment.
There are many states in America that consider the writing and handing over of a post dated cheque as the final payment for bad credit payday loans as a crime when there are no funds to meet the cheque and consequently the final repayment for that bad credit payday loan. This can lead to criminal prosecution of the respective borrower in states where this is regarded and has been legally passed as a crime. In many instances borrowers do not know that by providing their lenders with their cheque account information that they are actually legally giving their lenders the permission to electronically debit their cheque account for the loan fees and interest charges that the lender has attached to the borrower's bad credit payday loan. Borrowers need to know that this is not an automatic entitlement by their lenders and that they can specify their refusal to this aspect in their bad credit payday loan contract with their lender.
The Electronic Funds Transfer Act in the United States of America does not legally allow automatic access by lenders to their borrowers cheque account when credit is being granted by the lender to the borrower. This obviously applies to bad credit payday loans as well. Many borrowers are completely ignorant of all these legal laws, rules and regulations that have specifically been created and passed to protect them from being ripped off by dishonest and manipulative bad credit payday loan lenders. Borrowers need to realise that they can call their bad credit payday loan lender at any time during the loan process and tell them to stop making or processing electronic debits from their cheque accounts, with immediate effect. Many lenders will not inform borrowers that the they can legally block and prevent their lenders from making electronic debits from their accounts.
To read about the various types of Canada loans available at BHM Financial or to apply directly online for a Canada loan in any one of the Canadian provinces namely, Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland, Nova Scotia, Ontario, Prince Edward Island and Saskatchewan, visit the loans in Canada website at bad-credit-loan-in-canada.com. You can also text chat with a BHM Financial loans consultant now, online, about your Canada loan, by accessing this link Canada loans text chat.
