Ethics Creditors who make variable-rate loans are quick to raise interest rates when economic conditions change. Many people complain that when the prime rate rises by .25 percent, their loan rates go up by 3 percent or more. Creditors claim they have the legal right to raise rates, because the credit agreements allow for them to do so. Discuss the ethics of variablerate loans. Why would consumers accept the terms of a variable-rate loan?

Should restrictions be placed on creditors?