Question

quiz
question 8 of 8
emery applies for a loan online to help cover living costs while in college. later, she notices her payments aren’t impacting the balance much. looking closer, she finds extra fees in the agreement. which type of predatory loan offer did emery experience?
select a response.
○ bait and switch
○ payday loan
○ hidden fees
○ phishing scam

Explanation:

• Bait and switch involves advertising one offer then providing a worse one, which does not match the scenario of undisclosed fees.
• Payday loans are short-term, high-interest loans, not defined by hidden fees as their core predatory feature here.
• Hidden fees are undisclosed charges in a loan agreement that reduce the impact of payments on the principal balance, which matches Emery's experience.
• Phishing scams involve tricking someone to share personal information, not hidden loan fees.

Answer:

C. Hidden fees