These lenders avoid using the term interest, but their borrowers still do pay a charge for borrowing money. This would be considered lending. \((\mathrm{LO} 4,8)\) a) Islamic c) fringe b) payday d) subprime

First, let us define each of the four given lending types: a) Islamic Lending: A banking system that operates in accordance with Islamic law, which prohibits the collection and payment of interest. b) Payday Lending: Short-term, high-cost loans usually given for small amounts, with the lender requiring repayment on the borrower's next payday. c) Fringe Lending: A term used to describe the practices of certain banks or financial institutions offering loans to borrowers with poor credit history or low-income individuals, often with hidden fees or high interest rates. d) Subprime Lending: Lending to borrowers with a lesser credit history who are more likely to default on their loans, often resulting in higher interest rates and fees.

Now that we have defined the lending types, we need to determine which one avoids using the term interest but still charges borrowers a fee for borrowing money. From our definitions, we can see that only Islamic Lending operates under a prohibition of interest, while the other lending types are characterized by the presence of high interest rates or fees. Therefore:

Islamic Lending (a) is the type of lender that avoids using the term interest but still charges borrowers a fee for borrowing money.