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.

INCORRECT

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.

Reference:
Missouri Secretary of State Website (2007). Chapter 29--Title Loan Companies. Retrieved on December 31, 2007 from http://www.sos.mo.gov/adrules/csr/current/20csr/20c1140-29.pdf.