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Most payday loan borrowers get stuck in 'revolving door of debt'
Most payday loan borrowers get stuck in 'revolving door of debt'

WASHINGTON — Four out of five people who take out a short-term payday loan either roll it over or take out another one within two weeks, pushing them into a cycle of debt, according to a report to be released Tuesday by the Consumer Financial Protection Bureau. Nearly a quarter of borrowers — 22% — renewed the loan at least six times, causing them to end up paying more in fees than they originally borrowed, the bureau said in an analysis of 12 million loans made by storefront payday loan companies. "We are concerned that too many borrowers slide into the debt traps that payday loans can become," said Richard Cordray, the bureau's director. "As we...

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