Single-payment automobile name loans are gateway to difficulty, report suggests

Richard Cordray, manager for the customer Financial Protection Bureau, testifies at a hearing because of the Senate Banking, Housing and Urban Affairs Committee. (Photo: Alex Wong, Getty Pictures)

Borrowers whom sign up for single-payment loans secured because of the games to their autos usually become mired in debt, based on a brand new analysis that is federal for launch Wednesday.

Designed as being a real method for strapped borrowers to endure a money crunch between paychecks, the loans typically carry interest levels of 300%. Nonetheless, the customer Financial Protection Bureau analysis found the loans frequently have costlier-than-expected results:

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