Which term refers to individuals or financial institutions who try to trick or manipulate borrowers into taking out loans that are particularly unfair or harmful for the borrowers?

• A. Predatory lenders
• B. Credit
• C. Revolving credit
• D. Unpaid account balance

Answer: (A)

Predatory lending describes when lenders exploit borrowers by pressuring or deceiving them into loans that have unfair, excessively costly, or harmful terms. These lenders may steer people into high‑cost products, load on excessive fees, or use aggressive tactics to force a quick decision, all with the goal of trapping the borrower in debt. They often target individuals who are less able to defend themselves or who may lack financial literacy, using threats, misleading information, or repeated refinancing to keep the borrower tied to costly debt. The impact is typically a cycle of rising payments, defaults, or even foreclosure.

The other terms don’t refer to the actors who push these unfair loans. Credit is the broader ability to borrow, revolving credit describes a credit line that can be borrowed and repaid repeatedly (like a credit card), and an unpaid account balance is simply the amount still owed on a loan or credit line. So the term that best fits the description is predatory lenders.