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Personal Finance Courses: Predatory Lending

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1.
If you don't pay back your payday loan, the lender could take you to court and sue you for it.
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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.
2.
How long do most payday loans last?
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Two weeks. Most payday loans last about the length of a pay period, which is two weeks.
3.
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.
4.
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.
5.
Predatory lending can occur with which of the following?
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All of the above. All of these and many more can be involved in predatory lending. You should evaluate all of them carefully.