Predatory Lending: It's A Money Thing

What type of marketing techniques do predatory lenders commonly use? (hint: choose two correct answers)

• They offer instant approval

• They require the borrower to have good credit

• They offer quick cash

• They require multiple financial documents and information to approve your loan

Based on what you've learned so far what do you think is the average annual percentage rate (APR) on a payday loan?

• 0%

• 10%

• 30%

• 400%

Which of the following statements about payday loans are TRUE?

• Payday loans usually have low interest rates

• Payday loans do not have any additional fees like other types of unsecured loans

• Payday loans get borrowers into a sometimes inescapable cycle of borrowing money because of the high interest rates and fees

• To qualify for a payday loan you must have a checking account and excellent credit score