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Personal Finance Courses: Predatory Lending

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Choose wisely. There is only one correct answer to each question.

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1.
As a general rule, which of the following will charge the LEAST amount of interest if you take out a loan?
Choose wisely. There is only one correct answer.
A loan from a bank or credit union. As a rule, these loans have the lowest interest rates and charge the least amount of interest.
2.
If you don't pay back your payday loan, the lender could take you to court and sue you for it.
Choose wisely. There is only one correct answer.
True. Legally, the lender can do that if it wants. Of course, all lenders would rather not have to go that route if they can avoid it.
3.
Although people who take out payday loans use them for many different purposes, what is the most common use?
Choose wisely. There is only one correct answer.
Regular living expenses. Most borrowers use payday loans for regular living expenses.
4.
Which of the following are you forbidden to spend payday loan money on?
Choose wisely. There is only one correct answer.
You are not forbidden to spend payday loan money on anything. There are no restrictions on what you can spend payday loan money on.
5.
Predatory lending can occur with which of the following?
Choose wisely. There is only one correct answer.
All of the above. All of these and many more can be involved in predatory lending. You should evaluate all of them carefully.