Predatory Lenders

The elderly and poor are targets of predatory lending. 

• True 

• False 

The act of lending money at an unreasonably high interest rate, making repayment excessively difficult, or charging excessive fees such that the debtor is trapped in a cycle of debt

• personal loan

• predatory lending

• rent-to-own

• payday loan

Payday lenders, check cashing businesses, and tax refund lenders are all examples of:

• Traditional banking services

• Predatory lending businesses

• Online shopping businesses

• Supportive lending businesses

Which of the following is a common characteristic of predatory lending?

• Low interest rates

• Flexible repayment terms

• High fees and interest rates

• Government subsidies

Predatory lenders often target which group of people?

• Wealthy investors

• Middle-class families

• Vulnerable populations

• Corporate executives

What is a common tactic used by predatory lenders to trap borrowers?

• Offering financial advice

• Providing free credit reports

• Charging hidden fees

• Offering scholarships

Which law is designed to protect consumers from predatory lending practices?

• The Fair Credit Reporting Act

• The Truth in Lending Act

• The Clean Air Act

• The Affordable Care Act

What is the term for a loan that is structured to make it difficult for the borrower to repay?

• Subprime loan

• Predatory loan

• Secured loan

• Conventional loan

Which of the following is NOT a characteristic of predatory lending?

• Transparent terms

• High-pressure sales tactics

• Excessive fees

• Misleading advertising

How do predatory lenders typically advertise their services?

• Through community workshops

• By sponsoring educational programs

• Using misleading advertisements

• By offering free financial planning