Understanding Predatory Lending Practices

The video tutorial covers the basics of predatory lending, explaining how it involves imposing unfair, deceptive, or abusive loan terms on borrowers. It highlights the tactics used by predatory lenders, such as high fees, insane interest rates, and removing borrowers' equity. The tutorial also provides tips on recognizing predatory lenders, often referred to as 'Loan Sharks,' and warns against instant approval and quick cash offers. A practice assignment called 'Shady Sam' is introduced, where students can simulate the role of a loan shark to understand their strategies better.

What is the primary goal of predatory lenders?

• To help borrowers improve their credit score

• To provide financial education

• To maximize profits by exploiting borrowers

• To offer the lowest interest rates

Which of the following is NOT a tactic used by predatory lenders?

• Charging high fees

• Offering low-interest rates

• Removing borrower's equity

• Imposing abusive loan terms

What is a common analogy used for predatory lenders?

• Loan Angels

• Loan Sharks

• Loan Helpers

• Loan Guides

Which of the following is a red flag indicating predatory lending?

• Instant approval

• Low fees

• Flexible repayment terms

• Long approval process

What is the purpose of the game 'Shady Sam' in the practice assignment?

• To improve negotiation skills

• To understand the mindset of loan sharks

• To teach budgeting skills

• To learn about investment strategies

What should students do if they have questions before the unit assessment?

• Ask the teacher

• Consult online resources

• Ask their peers

• Wait until the assessment