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Moreover, the Bureau believes that many consumers do not appreciate the degree to which leveraged payment mechanisms can increase the degree of harm from unaffordable loans, real online payday loans in Illinois.
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The Bureau has proposed in a separate rulemaking to enumerate rules for a broader category of prepaid accounts.
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Cordray said the new report shows that the industry's business model is It "depends on people becoming stuck in these loans for the long term, since almost half their business comes from people who are basically paying high-cost rent on the amount of their original loan," he said.