Question

Which of these is a sign that you're dealing with someone engaged in unfair lending

practices?
O They charge inappropriately high interest rates, fees, and closing costs
O They contact you first
O They discourage you from reading loan documents
O They push you to apply for more than you can afford
O All of the above

Answer 1

O All of the above

Step-by-step explanation:

Honest and legitimate lenders require a borrower to be their client for a set period before they can advance credit to them. By the time the customer requests a loan, the lender will have some financial data to help them decide on the credit request.

Differentiating between a genuine and unfair lender is not that difficult. Unfair lenders are not interested in the borrower's ability to repay. They push a customer to sigh-up fast and for a high loan amount. The unfair lender aims at profiting from the collateral they receive as a guarantee for the loan. Genuine lenders are concerned about the risk involved in lending to a customer. They need some assurance that the client can repay.