Which of the following usually comes under the heading of abusive lending?
Which of the following usually comes under the heading of abusive lending?
Abusive lending usually encompasses a variety of predatory practices aimed at exploiting borrowers. These can include but are not limited to excessive and hidden fees in the amount financed, and aggressive marketing of credit to prospective borrowers who are unlikely to repay it on the terms offered. All these practices contribute to the characterization of abusive lending.
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This option directly addresses a core aspect of abusive lending practices, where lenders aggressively market loans to individuals who are unlikely to be able to repay the loans under the terms being offered. This practice can exploit vulnerable borrowers and lead to financial hardship.