Car Title Loans Quiz

7. Title lenders renew loans ___ times for every new title loan that they make.

d. INCORRECT

Title lenders renew loans 3.5 times more often than they make new loans.

Reference: Quester, A. & Fox, J.A. (2005). Car Title Loans: Driving Borrowers to Financial Ruin, A Report by The Center for Responsible Lending and The Consumer Federation of America. Retrieved on November 10, 2009 from http://www.responsiblelending.org/media-center/press-releases/archives/car-title-loans-trap-borrowers-in-cycle-of-debt.html.