
Predatory Lending Practices and Consequences

Interactive Video
•
Business, Social Studies, Other
•
9th - 12th Grade
•
Hard

Patricia Brown
FREE Resource
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10 questions
Show all answers
1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a common tactic used by predatory lenders to make borrowers accept unaffordable loans?
Using high-pressure sales tactics
Offering lower interest rates
Offering flexible repayment terms
Providing free financial advice
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does the practice of steering involve?
Offering borrowers free credit reports
Directing borrowers to subprime loans despite qualifying for better options
Encouraging borrowers to save more
Directing borrowers to the best available loans
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How do predatory lenders use the concept of 'packing'?
By adding unnecessary costs to the loan principal
By offering discounts on loan fees
By reducing the loan amount
By providing free insurance
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Why is credit life insurance often more expensive when included in a loan?
It is not available from other providers
It is sold as a single premium policy
It requires proof of insurability
It is offered at a discounted rate
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a characteristic of predatory loans regarding interest rates?
They have rates justified by the borrower's credit score
They have excessively high rates not justified by risk
They have lower rates than justified by risk
They offer fixed rates for all borrowers
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How do predatory lenders 'pad' costs?
By providing free appraisals
By reducing the loan term
By charging for unnecessary services
By offering discounts on fees
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does the practice of 'flipping' involve?
Refinancing a loan repeatedly without benefit to the borrower
Offering borrowers a fixed interest rate
Reducing the loan amount over time
Providing borrowers with free financial counseling
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