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Wednesday, April 24, 2013

CFPB Releases Report on Payday, Deposit Advance Loans

The CFPB has issued a report on payday and deposit advance loans that concludes that the products lead many consumers to a cycle of indebtedness.

The report specifically cites loose underwriting standards, high costs, and risky loan structures as possible contributing factors to consumers’ sustained use of the products.

CFPB Director Richard Cordray in a press call on the study said its purpose was to provide facts to inform discussions, and to provide market participants with a clear statement of the bureau's concerns as it considers next steps.

Read the report.

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