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

question 84

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 cannot afford having traditional bank accounts.For which of the following practices can these companies be most easily criticized?

• A) frequently selling shoddy products
• B) poorly serving disadvantaged consumers
• C) selling through high-pressure methods
• D) placing high costs on advertising and promotion
• E) using predatory pricing tactics

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Definitions:

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