Payday Loans Quiz

8. Of the following factors, what is not considered when applying for a payday loan?

d. CORRECT!

Payday lenders do not examine a person’s ability to repay loans at the time of application. In addition, lenders do not look at income level or assets. This means that a person may be offered a loan which they cannot afford to pay back.

Reference: Fox, Jean Ann & Perini, Anna. Internet Payday Lending: How High-Priced Lenders use the Internet to Mire Borrowers in Debt and Evade State Consumer Protections, Consumer Federations of America. November 30, 2004. http://www.consumerfed.org/pdfs/Internet_Payday_Lending113004.PDF.