Predatory Lending Awareness Quiz

7. A car title loan cannot cost more than 1.5 percent interest per month plus a fee to defray the ordinary costs of operations.


True. Car title lenders can charge 1.5 percent interest per month, up to $75 up front in fees and any additional fees the borrower will agree to. Borrowers who don’t pay back the loan lose their cars.

Missouri Secretary of State Website (2007). Chapter 29--Title Loan Companies. Retrieved on December 31, 2007 from