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Personal Finance Courses: Predatory Lending

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1.
If you put up your car as collateral for a car title loan, what happens to your car if you pay the loan back?
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You retain ownership of your car. As long as you pay the loan back, you legally must get your car back.
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.
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.
4.
Which of these lenders requires little or no credit check when loaning money to a borrower?
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Payday lender. Payday loans are fast and usually don't require a credit check.
5.
What is a typical fee on a payday loan?
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15%. Fee rates range from 15-20% of the amount borrowed.