Consumer finance companies:
A) charge rates that are regulated by the states where they do business.
B) are cooperative financial institutions that are owned by their members.
C) are nonprofit financial institutions.
D) accept deposits from their members and use the deposits for lending.
E) are managed by large manufacturing companies.

Question

Quizplus · Accepted Answer

Consumer finance companies charge rates that are regulated by the states where they do business. This differentiates them from other financial institutions, such as credit unions, which offer lower rates because they are owned by their members and operate as nonprofit organizations. Consumer finance companies are also different from traditional banks, which accept deposits from their customers and use those deposits for lending. Finally, consumer finance companies are not usually managed by large manufacturing companies.

Consumer Finance Companies