That's just the beginning. My favorite is the concept of the pre-payment penalty: a lender can (in some jurisdictions) charge you a fee if you attempt to pay down the principal on your loan sooner than you are required to.
But borrowers should know what they’re getting into, and have options.
It means you have to pay attention when borrowing, but loans with that penalty likely carry a slightly lower rate for the borrower (because they are predictable for the lender). It isn't entirely arbitrary.
It's supposed to compensate banks for lost profit from you not paying interest for the entire term. Equally, a bank can't cancel your mortgage before the term ends for the sole reason that it would be able to charge higher rates for a new mortgage.