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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?
Choose wisely. There is only one correct answer.
All of the above. All of these are possibilities.
2.
Although people who take out payday loans use them for many different purposes, what is the most common use?
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Regular living expenses. Most borrowers use payday loans for regular living expenses.
3.
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.
4.
Paying off payday loans on time, every time, is a great way to build up your credit score.
Choose wisely. There is only one correct answer.
False. Payday lenders do not report your borrowing activity to the three big credit bureaus, so the activity will not influence your credit score.
5.
Predatory lending can be identified by _______.
Choose wisely. There is only one correct answer.
Its high costs. Predatory lending involves a business charging higher-than-normal costs of various kinds.