Predatory Lending

Predatory Lending

Multiple Choice

I don't want to be financially taken advantage of as an adult.

• I agree

• I don't care, take my money, make me poor.

• Fees, Interest, Term length...who cares.

Poll

30% interest on a loan is...

• CRAZY HIGH

• not that bad

• I'm not sure

Multiple Choice

Use the next video to describe payday loans and the interest rate.

This video does a great job explaining!

• OK

• What?

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Home

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Open Ended

Payday loans are illegal in New York.

Do you think they should be illegal in every state?

Multiple Choice

Check cashing costs

• 1% and 12% of your check

• nothing

• is illegal in Texas

• 12% and 20% of your check

Multiple Choice

Most people who use check cashing services are

• low income people

• busy people

• investors

​Remember, this is NOT banking!
You will have LESS money using these services!!!

Multiple Choice

Check cashing charges you money to get your money.

• True

• False

• investors

SHADY SAM

This game will take you about 10 minutes.

It seems cruel, but these things REALLY happen.

Make sure to read all your emails in the game and take advantage of people.

Click the link to the right.

I will ask you questions based on this game.

​

​https://www.shadysam.com/

Multiple Choice

What goal were you given at the beginning of the game?

• Be fair to those in a tough situation.

• Offer low rates whenever possible.

• Make as much money off people as you can.

Multiple Choice

As the game says, most borrowers only pay attention to the --

• monthly payment amounts

• the interest rate

• the term length ( how long it will take to pay off the loan).

Multiple Choice

The loans that were most profitable tended to have the shortest or longest terms?

• Shortest

• Longest

Multiple Choice

The payday loans that were most profitable tended to have the lowest or highest monthly payments.

• lowest

• highest

Open Ended

Describe your emotional state as you played the game and why you felt that way.

Open Ended

How do you feel about pay day loans now?

Open Ended

What is ONE takeaway you learned from playing Shady Sam that will help you as a borrower (someone who needs a loan) in the future?

​Possible Alternatives to Payday and Car Title Loans

Here are some less expensive and less risky options to payday loans:

• Ask your creditors for more time to repay them.

• Try to get a loan from a credit union. Credit unions typically offer lower interest rates than banks or other lenders, and some federal credit unions offer “payday alternative loans.”

• Visit a community bank. Local banks can offer smaller loans with easier repayment terms than large regional and national banks. Talk with a small bank in your area to find out if you can qualify for a loan.

• Get help managing debt. A credit counselor may be able to help you manage your debt. Non-profit groups in every state offer credit guidance to people for no or low cost.

• Ask family and friends for help. It can be hard to borrow money from family or friends, but it can be worth it to avoid taking out, or rolling over, a payday or title loan.

• Local charities and churches. Charities, churches, and other centers of worship often offer financial and other help at no cost to community members who are hitting a rough spot.

Open Ended

Which of these options rely on working with some sort of financial institution, and why might that be difficult? (Think score)

Open Ended

What might be some pros and cons of asking friends or family members for financial help?

Open Ended

If you were in a situation where you were $200 short — would you go with a payday lender or with one of the options provided in the previous slide? Explain your reasoning. 

You're done and now you are more educated!

Put up your computer, go to your seat and wait for the bell to ring. DO NOT stand by the door. Have an AWESOME day!