Question
What is predatory lending?
A: when banks treat borrowers unfairly to make larger profits
B: when banks refuse to give loans to people who qualify for them
C: when banks agree to give people loans but then refuse to provide the money
D: when banks don’t make a large profit on the loans they provide to borrowers
A: when banks treat borrowers unfairly to make larger profits
B: when banks refuse to give loans to people who qualify for them
C: when banks agree to give people loans but then refuse to provide the money
D: when banks don’t make a large profit on the loans they provide to borrowers
Answers
GPT-4o mini
A: when banks treat borrowers unfairly to make larger profits
Predatory lending refers to unfair, deceptive, or fraudulent practices of some lenders during the loan origination process, often targeting vulnerable borrowers. This can involve high interest rates, hidden fees, or other unfavorable terms that lead to borrowers facing financial hardship.
Predatory lending refers to unfair, deceptive, or fraudulent practices of some lenders during the loan origination process, often targeting vulnerable borrowers. This can involve high interest rates, hidden fees, or other unfavorable terms that lead to borrowers facing financial hardship.