Personal Finance Courses: Predatory Lending

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1.
The interest rates of payday loans are very high.
Choose wisely. There is only one correct answer.
True. Payday loans have average annual interest rates of 500 percent--or more.
2.
What are some things that a payday lender could do if you did not pay back a payday loan you took out?
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All of the above. All of these are possibilities.
3.
If you put up your car as collateral for a car title loan, what happens to your car if you pay the loan back?
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You retain ownership of your car. As long as you pay the loan back, you legally must get your car back.
4.
If you roll over a payday loan three times, you will be charged a new fee each time.
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True. You will be charged a new fee for each rollover.
5.
As far as loans go, payday loans are generally small.
Choose wisely. There is only one correct answer.
True. Payday loans are usually $500 or less, making them small.