Test your knowledge

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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.

Which of these lenders requires little or no credit check when loaning money to a borrower?

Choose wisely. There is only one correct answer.

Payday lender

Bank

P2P lender

Payday lender. Payday loans are fast and usually don't require a credit check.

A payday lender does not legally have to identify the fees charged to your payday loan.

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True

False

False. By law, a lender must spell out all fees to you in your contract.

Predatory lending can be identified by _______.

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Its high costs

Its low costs

Its high costs. Predatory lending involves a business charging higher-than-normal costs of various kinds.

What are some things that a payday lender could do if you did not pay back a payday loan you took out?

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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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