Which of the following is an indicator of predatory lending?

Excessive fees that are not disclosed to the borrower serve as a strong indicator of predatory lending practices. In a typical ethical lending relationship, transparency regarding all costs associated with a loan is paramount. When lenders impose excessive fees and fail to disclose these charges upfront, it can lead borrowers into a situation where they are unaware of the total cost of the loan. This lack of transparency makes it more difficult for borrowers to understand their financial obligations and the true burden of repayment, which is a hallmark of predatory lending.

Predatory lending often thrives on taking advantage of borrowers' lack of understanding of complex financial terms or undisclosed costs. By exploiting these gaps in knowledge, predatory lenders aim to maximize their profits at the expense of vulnerable borrowers who may be in dire need of financial assistance.

The other options indicate practices that are typically not associated with predatory lending. Low interest rates can be a sign of competitive lending practices; a clear loan agreement reflects transparency and fairness; and flexible payment terms are often designed to assist borrowers rather than exploit them. These attributes generally align more with responsible lending practices.