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 are known for charging high interest rates and fees. Requiring the borrower to write a check for more than the amount of the loan is a common practice among these types of lenders. This is because the lender knows that the borrower will not have the funds to cover the check when it comes time to repay the loan, which allows the lender to charge additional fees and interest.

Which Lender Is Likely to Ask You to Write a Check