Consumer finance companies usually charge lower rates of interest than commercial banks.

Question

Quizplus · Accepted Answer

This statement is false. On average, consumer finance companies tend to charge higher rates of interest than commercial banks. This is because they primarily work with customers who have poor credit or limited credit history, and therefore present a higher risk of default. To offset this risk, these companies often charge higher interest rates, fees, and other charges.

Consumer Finance Companies Usually Charge Lower Rates of Interest Than