Personal Finance Courses:
Predatory Lending
Test your knowledge
Choose wisely. There is only one correct answer to each question.
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1.
The interest rates of payday loans are very high.
Choose wisely. There is only one correct answer.
True
False
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?
Choose wisely. There is only one correct answer.
Turn your loan over to a debt collector
Sue you
Repossess your property that you put up as collateral
All of the above
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?
Choose wisely. There is only one correct answer.
The lender can still keep the car
You retain ownership of your car
Nothing
None of the above
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.
Choose wisely. There is only one correct answer.
True
False
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
False
True. Payday loans are usually $500 or less, making them small.
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