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.

How good does your credit need to be in order for you to take out a payday loan?

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Excellent

Very good

Average

It doesn't need to be good

It doesn't need to be good. You don't need good credit in order to get a payday loan. Many borrowers do not have good credit.

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.

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.

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

Choose wisely. There is only one correct answer.

True

False

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

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