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.

INCORRECT

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.

Reference:
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.