question 8 of 8\nemery applies for a loan online to help cover living costs while in college.\nlater, she…

question 8 of 8\nemery applies for a loan online to help cover living costs while in college.\nlater, she notices her payments arent impacting the balance much.\nlooking closer, she finds extra fees in the agreement. which type of\npredatory loan offer did emery experience?\nselect a response.\nbait and switch\npayday loan\nhidden fees\nphishing scam

question 8 of 8\nemery applies for a loan online to help cover living costs while in college.\nlater, she notices her payments arent impacting the balance much.\nlooking closer, she finds extra fees in the agreement. which type of\npredatory loan offer did emery experience?\nselect a response.\nbait and switch\npayday loan\nhidden fees\nphishing scam

Answer

Brief Explanations:

  • Bait and switch: Involves advertising one thing (e.g., low - interest loan) and then offering something different (e.g., high - interest loan). But the key here is the discovery of extra fees, not a switch in the main loan terms.
  • Payday loan: A short - term, high - interest loan typically due on the borrower's next payday. The problem here is about extra fees, not the nature of the loan being a payday loan.
  • Hidden fees: When a loan agreement has fees that are not clearly disclosed upfront. Emery found extra fees in the agreement, which is characteristic of hidden fees.
  • Phishing scam: Usually involves tricking someone into providing personal information (like passwords, social security numbers) through fake websites or emails. This is not about loan fees.

Answer:

Hidden fees