Predatory Lending Awareness Quiz
1. The state of Missouri is a national leader in regulating interest rates charged by rent-to-own stores.
2. Most rent-to-own store customers are college students and recent graduates who have purchased their first home.
3. The average annual percentage rate of interest for a Missouri payday loan in 2010 was 150 percent.
4. There are more payday loan stores in Missouri than there are McDonald's restaurants and Starbucks combined.
5. The maximum interest rate that a pawnbroker may charge for a secured loan cannot exceed 2 percent per month.
6. Pawnbrokers must protect pawned property from damage or loss.
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.
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.
9. A prepayment penalty is an extra fee charged to you for paying off a loan early.
10. The maximum annual percentage rate (APR) allowed on a tax refund anticipation loan is 36 percent.