Finance
In South Dakota, which of the following would be considered 'predatory lending'?
ACharging market-rate interest to qualified borrowers
BTargeting elderly or minority borrowers with high-fee, high-rate loans they cannot afford✓ Correct
CRequiring a down payment greater than 20%
DCharging a origination fee of 1%
Explanation
Predatory lending involves deceptive, abusive, or unfair loan products targeting vulnerable borrowers — excessive fees, unaffordable payments, prepayment penalties, and targeting protected classes.
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