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Personal Finance Courses: Predatory Lending

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1.
As a general rule, which of the following will charge the LEAST amount of interest if you take out a loan?
Choose wisely. There is only one correct answer.
A loan from a bank or credit union. As a rule, these loans have the lowest interest rates and charge the least amount of interest.
2.
All credit cards are a form of predatory lending.
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False. Some credit cards have very high fees and other predatory features, but many of them do not.
3.
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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All of the above. All of these are possibilities.
4.
As far as loans go, payday loans are generally small.
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True. Payday loans are usually $500 or less, making them small.
5.
The interest rates of payday loans are very high.
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True. Payday loans have average annual interest rates of 500 percent--or more.