Final answer:
The payday loan lender that is likely to ask you to write a check for $115 before granting you a $100 loan is one that charges a finance fee. This practice ensures that the lender gets paid back in full and is common in the payday loan industry.
Step-by-step explanation:
The payday loan lender that is likely to ask you to write a check for $115 before granting you a $100 loan is one that charges a finance fee. The finance fee is usually a percentage of the loan amount. For example, if the finance fee is 15% of the loan amount, you would need to write a check for $115 ($100 loan amount + $15 finance fee).
This practice is common in the payday loan industry as a way for lenders to ensure they get paid back. When you write a check for the total amount, the lender can either deposit it directly or hold it until the due date and then cash it. If the loan is not repaid on time, the lender can cash the check and collect the full amount owed.
It is important to read and understand the terms and conditions of the loan agreement before agreeing to write a check. Make sure you are aware of any additional fees or penalties that may apply if the loan is not repaid on time.