More than 80% of payday loans are rolled over or renewed within14 days, according to a new CFPB study released on Tuesday.
The study also revealed the majority of all payday loans aremade to borrowers who repeatedly renew the loans and pay more infees than the amount originally borrowed. Payday loans, also knownas cash advances or check loans, are typically $500 or less.
The CFPB found that one out of five payday borrowers collectingmonthly public benefits are trapped in debt.
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