Recognize high-cost short-term loans

Payday and title loans can combine short repayment periods, fees, rollovers, and serious consequences.

Words to know

• Scam: A dishonest attempt to take money, information, or account access.
• Finance charge: The dollar cost of borrowing, including interest and certain fees.
• Complaint: A factual request asking a company or official agency to review a consumer problem.

The main idea

The dollar fee may look small until it is compared with the amount borrowed, the time allowed, and the APR.

Use this lesson as a starting point. Check the current numbers, written terms, and dates that apply to you. If a detail is missing, leave it blank until an official record or qualified professional can confirm it.

What can change the answer

• Urgency, secrecy, guarantees, and unusual payment requests are warning signs.
• Dates, receipts, statements, and written promises can determine the next useful step.
• The right official channel depends on the product and problem.

Three things to remember

• Compare APR and finance charge
• Ask about lower-cost options
• Understand rollover and collateral risk

Common mistakes to avoid

• Letting an unexpected caller choose the contact method.
• Paying upfront for a guaranteed refund, loan, debt fix, or recovery.
• Sending full account numbers, passwords, or unrelated private records with a complaint.

Try these steps

• Request the written cost disclosure
• Check a credit union or payment plan
• Review state rules through an official regulator

Questions to ask yourself

• Can the request be verified through an official channel found independently?
• What facts and records support the problem?
• What specific result is being requested?