Richard Cordray, manager for the customer Financial Protection Bureau, testifies at a hearing because of the Senate Banking, Housing and Urban Affairs Committee. (Picture: Alex Wong, Getty Pictures)
Borrowers who remove single-payment loans guaranteed because of the games on the autos usually find yourself mired in debt, based on a 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%. But, the buyer Financial Protection Bureau analysis discovered the loans usually include costlier-than-expected results:
- One out of five borrowers who sign up for a single-payment name loan to their automobile or truck find yourself having their automobile seized by the lending company for non-payment.