Question
Which is an example of predatory lending?
A: A woman fails to quality for a loan she needs in order to start a new business in her community.
B: A teenager applies for a loan at her local bank branch but is told that she’s too young to apply without a parent’s approval.
C: A Black couple pays a higher interest rate for a mortgage loan than a White couple living in the same city.
D: A Mexican American man opens a savings account, but when interest rates drop nationwide, his account doesn’t earn as much as he had hoped.
A: A woman fails to quality for a loan she needs in order to start a new business in her community.
B: A teenager applies for a loan at her local bank branch but is told that she’s too young to apply without a parent’s approval.
C: A Black couple pays a higher interest rate for a mortgage loan than a White couple living in the same city.
D: A Mexican American man opens a savings account, but when interest rates drop nationwide, his account doesn’t earn as much as he had hoped.
Answers
GPT-4o mini
C: A Black couple pays a higher interest rate for a mortgage loan than a White couple living in the same city.
This scenario exemplifies predatory lending, which involves unfair, deceptive, or fraudulent practices in the loan or mortgage market, often targeting vulnerable populations based on race, ethnicity, or socioeconomic status.
This scenario exemplifies predatory lending, which involves unfair, deceptive, or fraudulent practices in the loan or mortgage market, often targeting vulnerable populations based on race, ethnicity, or socioeconomic status.