Predatory Lending Awareness Quiz

3. The average annual percentage rate of interest for a Missouri payday loan in 2010 was 150 percent.

CORRECT

False. The average annual percentage rate of interest for a Missouri payday loan was 441 percent in 2010. The most frequently occurring annual percentage rate in 2010 was 521 percent. The highest annual percentage rate charged by a Missouri payday lender in 2010 was 1,328 percent.

Reference:
Missouri Division of Finance. (2011). Report to General Assembly pursuant to section 408.506 RSMo. Retrieved January 20, 2011 from http://finance.mo.gov/consumercredit/documents/2011PaydayLenderSurvey.pdf.