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)Federal savings bank
D)Department store
E)Commercial bank

Question

Quizplus · Accepted Answer

Payday advance companies often charge high fees and interest rates for short-term loans. Asking for a check for more than the amount borrowed is a common practice among these lenders. In this case, the borrower would have to repay $115 rather than just the $100 borrowed.

Which Lender Is Likely to Ask You to Write a Check