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Predatory lending can be identified by _______.

Its high costs

Its low costs

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

What is a typical fee on a payday loan?

15%

50%

100%

15%. Fee rates range from 15-20% of the amount borrowed.

To qualify for a payday loan, what must your income be?

$100 per week

$300 per week

There is no minimum.

There is no minimum. You just need to earn sufficient money to cover the loan.

When you take out a payday loan, how long is the grace period for paying it back?

Two weeks

One month

Two months

There is no grace period.

There is no grace period. Payday loans do not offer grace periods; you must pay them back on your payday or you will be charged late fees.

If you are behind on a non-payday loan, why should you talk with the creditors about it?

They will forgive the loan.

They would rather work with you than have to sell your loan to a debt collector.

They will give you another loan to cover it.

None of the above

They would rather work with you than have to sell your loan to a debt collector. If they sell your loan to a debt collector, they will get very little for it. They WANT to work with you rather than see that happen.