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Personal Finance Courses: Predatory Lending

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1.
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.
2.
The interest rates of payday loans are very high.
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True. Payday loans have average annual interest rates of 500 percent--or more.
3.
As far as loans go, payday loans are generally small.
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True. Payday loans are usually $500 or less, making them small.
4.
All credit cards are a form of predatory lending.
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False. Some credit cards have very high fees and other predatory features, but many of them do not.
5.
It is possible to pay more in fees on a payday loan than the amount you originally borrowed.
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True. If you extend the loan or take out a different one to cover it, and you did this several times in a row, you might actually pay more in interest than the actual loan itself.