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Personal Finance Courses: Predatory Lending

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1.
What is a typical fee on a payday loan?
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15%. Fee rates range from 15-20% of the amount borrowed.
2.
You can get a short-term loan from your checking account through what is called _______.
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Overdraft protection. Overdraft protection simply means overdrawing your checking account. You will likely be charged a fee for it.
3.
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.
4.
Which of the following are you forbidden to spend payday loan money on?
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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?
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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.