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FinancingLending_discriminationMEDIUM

Instead of avoiding a neighborhood, a lender floods it with high-cost loans and abusive terms because the residents are seen as vulnerable. What discriminatory practice is this?

Correct Answer

C) Reverse redlining

Reverse redlining is correct because the facts match the practice of targeting residents of a protected or underserved area for unfair, abusive, or predatory credit terms. That is the best description of the relationship, right, or legal concept tested here.

Answer Options
A
Disparate treatment
B
Adverse action notice
C
Reverse redlining
D
Disparate impact

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Related Topics & Key Terms

Key Terms:

lending_discriminationfinancingreverse_redliningpredatory_lending
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