Payday Loans Quiz
Payday loans give consumers cash until their next payday. A borrower writes a personal check to the payday lender, who holds the check for a period of 14 to 31 days. At the end of that period, the check is deposited, and the borrower returns with cash to reclaim the check, or the loan gets renewed and the borrower pays additional fees. The 2011 reporting cycle includes data from October 1, 2009 to September 30, 2010. Take the following quiz to test your knowledge and to learn more about payday loans.
1. Missouri Division of Finance regulates payday lenders.
2. How many calls did consumers make to the Division of Finance about payday loans in 2010?
3. What is the highest amount a payday lender can make a loan for in the state of Missouri?
4. In Missouri, the minimum payday loan term is 7 days and the maximum is 3 weeks.
5. What was the average dollar amount of a payday loan in the state of Missouri in 2010?
6. What percentage of the loan must be paid off each time a payday loan is renewed?
7. A payday loan may be renewed up to 5 times in the state of Missouri.
8. Of the following factors, what is not considered when applying for a payday loan?
9. About how many payday loans were made in Missouri in 2010?
10. A payday lender can charge the borrower $25 plus the amount of bank charges when a check is returned NSF or not sufficient funds.
11. The average annual percentage rate of interest for a Missouri payday loan in 2010 was 150%.