while i don't excuse her ignorance, it seems like predatory lending.
Years ago the wife and I looked at a Jeep, I am guessing this is early 90's. They are running a $99 for the first year of payments.
Ok lets look, the wife (the smart one of us two) comes up and says, that $99 will not even cover the interest on the loan on this vehicle, what happens to the rest, oh ahhhhh, it is rolled into the principal. To that I say so you mean I am going to have a greater debt each month.
We got invited to leave. A little while later the AG went after this practice.