Question

A person who can afford a monthly payment of and signs a loan agreement with a monthly payment of is most likely a victim of predatory lending. O A. $800; $1100 O B. $900; $800 O C. $900; $900 O D. $1100; $900​

Answer 1

Answer:

A. $800; $1100

Explanation:

Predatory lending is an unfair and sometimes illegal practice by lenders of imposing expensive loans to borrowers. In predatory lending, the lender withholds critical information or deceives the customer into signing a loan that they cannot afford to repay. Lender employs dirty and unjust tricks to get the customer sigh for the loans.

If a lender can afford to pay a maximum of $800 per month, advancing them a loan requiring payment of $1100 per month is putting a lot of financial strain on them. It is an example of predatory lending as it imposes an unfair burden on the borrower