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Personal Finance Courses:
Predatory Lending
Test your knowledge
Choose wisely. There is only one correct answer to each question.
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Review your answers below to learn more.
1.
How good does your credit need to be in order for you to take out a payday loan?
Choose wisely. There is only one correct answer.
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.
2.
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.
3.
How long do most payday loans last?
Choose wisely. There is only one correct answer.
A year
A month
Two months
Two weeks
Two weeks. Most payday loans last about the length of a pay period, which is two weeks.
4.
If you don't pay back your payday loan, the lender could take you to court and sue you for it.
Choose wisely. There is only one correct answer.
True
False
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.
5.
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.
The lender can still keep the car
You retain ownership of your car
Nothing
None of the above
You retain ownership of your car. As long as you pay the loan back, you legally must get your car back.
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