Which of the Following Statements Is NOT True of Consumer

question 86

Multiple Choice

Which of the following statements is NOT true of consumer finance companies?

• A)Their borrowers have higher default risk than bank customers.
• B)They charge higher interest rates than banks do on similar loans.
• C)They lend primarily to consumers.
• D)They are strictly regulated by state governments.

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Definitions:

Statute Of Limitations

A statute that requires that certain classes of lawsuits must be brought within defined limits of time after the right to begin them accrued or the right to bring the lawsuit is lost.

Unenforceable Contract

An agreement that, due to legal deficiencies or circumstances, cannot be legally compelled by a court to be executed by the parties involved.

Executory Contract

A contract under which both parties to the agreement have obligations that remain to be fulfilled; if one side has completed its obligations, the contract is no longer executory.

Unilateral And Executed

Unilateral refers to an action or agreement made or performed by one party; executed means that the action has been completed or the agreement has been fully performed.