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Richard Cordray

Consumer watchdog turns its attention to auto-title loans

Consumer watchdog turns its attention to auto-title loans

Payday loans aren’t the only type of expensive consumer credit that start out as a short-term financial solution but often turn into long-term debt traps, according to a report released Tuesday by the Consumer Financial Protection Bureau.

Consumers who take out auto-title loans often are unable to pay by the due date and refinance repeatedly to retain possession of their vehicles, the bureau found after analyzing millions of loans. Even then, about 1 in 5  borrowers lose their wheels, according to the analysis.

The report is the latest in a series of studies released by the federal agency as it pushes for a broad set of new rules governing companies...

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