Which marketing tactic involves offering appealing loan terms that are unavailable?

The tactic that involves offering appealing loan terms that are unavailable is known as bait and switch. This unethical marketing strategy typically attracts customers with enticing offers or promotions, which may not be available once the consumer expresses interest or attempts to proceed with the transaction. Instead of the initially advertised terms, the consumer is then presented with less favorable options, often leading to frustration and mistrust.

This tactic is especially concerning in the mortgage industry because it can lead to misleading practices that not only affect consumers’ financial wellbeing but can also damage a lender's reputation. Laws and regulations are in place to protect consumers from such deceptive practices, emphasizing the importance of transparency and fairness in lending.