Which lender is likely to ask you to write a check for $115 before granting you a $100 loan?
A) Credit union
B) Payday advance company
C) Finance company
D) Department store
E) Commercial bank

Question

Quizplus · Accepted Answer

Payday advance companies typically charge high interest rates and fees, and require borrowers to write a post-dated check for the loan amount plus additional fees. In this scenario, the lender is asking for $115 to grant a $100 loan, indicating that it is likely a payday advance company.

Which Lender Is Likely to Ask You to Write a Check