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Predatory Lending
Test your knowledge
Choose wisely. There is only one correct answer to each question.
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Review your answers below to learn more.
1.
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.
2.
Which of the following best describes how payday loans differ from bank and peer-to-peer (P2P) loans in terms of repayment time?
Choose wisely. There is only one correct answer.
You can pay back a payday loan over many years.
Payday loans must be repaid within weeks.
Payday loans and bank loans both offer similar repayment periods.
Payday loans have the longest repayment time.
Payday loans must be repaid within weeks. Banks and P2P platforms let you take much longer to pay loans back.
3.
A payday lender does not legally have to identify the fees charged to your payday loan.
Choose wisely. There is only one correct answer.
True
False
False. By law, a lender must spell out all fees to you in your contract.
4.
Predatory lending can occur with which of the following?
Choose wisely. There is only one correct answer.
Tax refunds
Payday loans
Rent-to-own stores
All of the above
All of the above. All of these and many more can be involved in predatory lending. You should evaluate all of them carefully.
5.
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.
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