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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?
Choose wisely. There is only one correct answer.
You retain ownership of your car. As long as you pay the loan back, you legally must get your car back.
2.
How soon after receiving your funds from a payday loan can you spend the money?
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Right away. You may spend the money as soon as you want.
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.
What do borrowers use payday loans for?
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All of the above. People take out payday loans for many different reasons.
5.
If you take out $1000 from a payday lender, a credit card, and a credit card cash advance, which will charge the most interest?
Choose wisely. There is only one correct answer.
The payday lender. By far, the payday lender will charge the most interest. The dollar amount difference between it and the credit cards will be immense. It should be noted that there are also options that are even lower in interest than the credit cards.