Payday Loans In Ohio Bankruptcy
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Keep in mind, that the average term length for a payday loan is only 14 days. So when you're using APR to measure the cost of a payday loan, you are essentially taking the cost of the loan for that two-week period, and you're assuming that that cost would be applied again every two weeks.
Nationally, progress has been piecemeal. The federal government outlawed payday loans to military members in 2006, but action for all consumers is still a work in progress. Last year, the Consumer Financial Protection Bureau (CFPB) announced proposed rules that would make payday loans more affordable, in part by requiring that lenders ensure the borrower's ability to repay the loan. But the underwriting standards only kick in after a borrower has taken out at least six loans in a year, which has led some payday reform advocates to argue that the final rule's protections don't do enough to keep borrowers out of debt.
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