Which factor is NOT considered when determining if loan fees are excessive?

The cost of living increases are generally not directly considered when evaluating whether loan fees are excessive. Instead, this determination typically focuses on factors that are more directly related to the lending market itself.

Market conditions refer to the overall economic landscape impacting lending, such as interest rates, supply and demand for loans, and economic stability, which can all influence loan fees. Industry standards help assess what is considered acceptable or typical in terms of fees across the lending industry, ensuring that lenders are not charging significantly more than their peers for similar services. Competitor pricing allows lenders to remain competitive and adjust their fees based on what others in the market are charging.

In contrast, while the cost of living can impact borrowers' ability to repay loans or their overall financial capacity, it doesn't typically play a role in determining whether the fees themselves are excessive. This distinction helps focus the evaluation on aspects that are more relevant to the loan's market dynamics.