Predatory Lending Awareness Quiz
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.
False. In order to cancel a car title loan without any costs, the full principal must be returned to the lender by the close of the lender’s next full business day.
Center for Responsible Lending. Loans Secured by Car Titles Trap Borrowers in Cycle of Debt, According to National Consumer Experts. Retrieved on October 12, 2009 from http://www.responsiblelending.org/media-center/press-releases/archives/car-title-loans-trap-borrowers-in-cycle-of-debt.html.