Payday Loans Quiz

6. What percentage of the loan must be paid off each time a payday loan is renewed?

c. INCORRECT

Each time a payday loan is renewed, the borrower must pay off 5 percent of the principal.

Reference: Missouri General Assembly. (n.d.). Missouri Revised Statutes, 408.505. http://www.moga.mo.gov/statutes/C400-499/4080000505.htm.