Predatory Lending Awareness Quiz
1. The state of Missouri is a national leader in regulating interest rates charged by rent-to-own stores.
2. Most rent-to-own store customers are college students and recent
graduates who have purchased their first home.
True
False
3. The average annual percentage rate of interest for a Missouri
payday loan in 2006 was 150%.
True
False
4. There are four times as many payday loan stores
in Missouri as there are McDonalds restaurants.
True
False
5. The maximum interest rate that a pawnbroker may
charge for a secured loan cannot exceed 1% a month.
True
False
6. Pawnbrokers must protect pawned property from
damage or loss.
True
False
7. A car title loan cannot cost more than 1.5%
interest per month plus a fee to defray the ordinary costs of
operations.
True
False
8. A consumer may cancel a car title loan without
any costs by returning the full principal amount to the lender within
one week of the date of the contract.
True
False
9. A prepayment penalty is an extra fee charged to
you for paying off a loan early.
True
False
10. The maximum annual percentage rate (APR)
allowed on a tax refund anticipation loan is 36%.
True
False
