Several Companies,some of Them Operating Through the Internet,offer "Paycheck Advances

question 125

Multiple Choice

Several companies,some of them operating through the Internet,offer "paycheck advances." Consumers are encouraged to take out a loan against a paycheck they expect to receive in the near future.These short-term loans with high-interest rates,and high penalties for late payments,are often marketed to consumers who do not have traditional bank accounts.These companies could most easily be criticized for which of the following?

• A) shoddy products
• B) poor service to disadvantaged consumers
• C) high-pressure selling
• D) high advertising and promotion costs
• E) excessive markups

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Definitions:

Monetary Limitation

Refers to the maximum amount of money that can be claimed or allocated under a contract or insurance policy.

Negligence

The failure to exercise the standard of care that a reasonably prudent person would have exercised in a similar situation, leading to harm or damage.

B.C. Supreme Court

The superior trial court for the province of British Columbia in Canada, handling civil and criminal cases and appeals.

County Court

A local court in certain jurisdictions that deals with civil matters such as family law, small claims, and sometimes minor criminal offenses.