Payday lenders, auto title loan centers, and other short-term lending institutions are not regulated.

• True
• False 

Which of these is not typically a strategy used by auto title lenders to increase their revenues?

• Charging extremely high interest rates (often over 100%).
• Repossessing your car after one late payment to resell for more than its value.
• Charging "hidden fees" for things like initial inspection and making the contracts difficult to interpret so you may not notice.
• Granting loans for far lower than the actual resale value of your car.

True or False:  Rent-to-own total prices are comparable to those you'd find in a store. 

• True
• False

True or False: Because payday loans have such high interest rates, they're typically used by high-income households. 

• True 
• False

True or False: Auto title loans are marketed as long-term loans, similar to a mortgage or student loan.  

• True 
• False 

True or False:  Many short-term lenders realize their borrowers will never be able to pay off their loans on-time, but they still lend anyway. 

• True 
• False 

True or False:  It's possible to get auto title loans, rent-to-own furniture, and other loans without passing a credit check.  

• True 
• False 

Jake takes out a payday loan of $300. In two weeks, he doesn't have the money to repay it in full. Select which options keeps Jake trapped in the cycle of repayment.

• Jake sells his video game system and game collection and pays off the loan.  
  
• Jake borrows $300 from his father to pay back the loan, and sets up a plan to pay him back $50/mo for 6 months.  
• Jake uses his paycheck to pay the $300, but then immediately takes out another $300 at the same location to pay bills.
•   Jake sells some clothes, furniture, and old sports equipment to pay off the loan 

True or False: Pawn shows hope you do not repay your loan so that they can sell your item.

• True 
• False 

True or False: Pawn shops offer you a receipt so that you can come back and reclaim your item once you've paid back the loan. 

• True 
• False