Studies have shown almost all of pay day loans are created to Borrowers Caught in a Revolving Door of financial obligation
WASHINGTON, D.C. вЂ” Today, the buyer Financial Protection Bureau (CFPB) issued a study on payday lending discovering that four away from five pay day loans are rolled over or renewed within fourteen days. The analysis also suggests that nearly all all payday advances are created to borrowers whom renew their loans a lot of times they originally borrowed that they end up paying more in fees than the amount of money.
вЂњWe are concerned that too borrowers that are many to the debt traps that payday advances can be,вЂќ said CFPB Director Richard Cordray. вЂњAs we strive to bring required reforms to the payday market, you want to make sure consumers get access to small-dollar loans which help them get ahead, perhaps not push them further behind.вЂќ