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Personal Finance Courses: Predatory Lending

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Choose wisely. There is only one correct answer to each question.

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1.
Which of the following are you forbidden to spend payday loan money on?
Choose wisely. There is only one correct answer.
You are not forbidden to spend payday loan money on anything. There are no restrictions on what you can spend payday loan money on.
2.
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. 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.
3.
As far as loans go, payday loans are generally small.
Choose wisely. There is only one correct answer.
True. Payday loans are usually $500 or less, making them small.
4.
The interest rates on payday loans are _______.
Choose wisely. There is only one correct answer.
Higher than those of banks or credit unions. Interest rates on payday loans are generally much higher than those of other loans.
5.
If you roll over a payday loan three times, you will be charged a new fee each time.
Choose wisely. There is only one correct answer.
True. You will be charged a new fee for each rollover.