Which of the following statements regarding consumer finance companies is true?
A) Consumer finance companies accept deposits and give small loans to their members.
B) Consumer finance companies make loans of any size to low-risk borrowers.
C) Consumer finance companies offer consumer loans at the lowest interest rates.
D) Consumer finance companies offer consumer loans only for home mortgage lending.
E) Consumer finance companies make secured and unsecured loans to qualified individuals.

Question

Quizplus · Accepted Answer

Consumer finance companies make both secured and unsecured loans to qualified individuals. They do not accept deposits like traditional banks and credit unions. The loans they offer may have higher interest rates than other types of loans due to the higher risk involved in lending to individuals with lower credit scores.

Which of the Following Statements Regarding Consumer Finance Companies Is