ECONOMICS
TECHNOLOGY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
low
|
|
|
high
|
|
|
Either A or B
|
|
|
None of the above
|
Detailed explanation-1: -Payday loans have high fees that can equate to annual percentage rates, or APRs, of around 400%-much higher than personal loan APRs, which average around 10% to 11% for a 24-month term, according to the Federal Reserve.
Detailed explanation-2: -If you have borrowed money from a loan shark you are under no legal obligation to repay the debt. If a lender isn’t licensed by the FCA then they have no legal right to recover the debt. Loan sharks sometimes frighten people by saying they’ll be prosecuted and even sent to prison if they don’t pay up.
Detailed explanation-3: -For example, a loan shark might lend $10, 000 to a person with the provision that $20, 000 be repaid within 30 days. These lenders may also often call on the debt to be repaid at any time, using violence as a means of forcing repayment.