Which of the following is an example of a predatory lending practice?

Predatory lending encompasses a range of abusive practices that target vulnerable borrowers, often leading to unsustainable debt and financial hardship. The correct choice highlights that each of the listed practices falls under this category.

Offering loans with no credit checks can be particularly harmful, as it allows lenders to provide loans to individuals who may not have the financial stability to repay those loans. Without assessing a borrower's creditworthiness, lenders can take advantage of those who are already in precarious financial situations.

Providing loans with a low initial interest rate that increases significantly is another common predatory tactic. This practice, often referred to as "teaser rates," can lure borrowers in with the promise of affordable payments, only to lead them to much higher payments later. It can result in borrowers being unable to keep up with their loan obligations, leading to foreclosure or significant financial distress.

Charging exorbitant fees for refinancing is also a red flag for predatory lending. When lenders impose undisclosed or excessively high fees, it can trap borrowers in a cycle of debt that is hard to escape. These fees can inflate the loan amount and make it difficult for the borrower to maintain their payments.

Combining all these practices, it is evident that they all exemplify the characteristics of predatory lending, which