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The Bureau is making these preliminary findings based on the specific evidence cited below in the section-by-section analysis of proposed § 1041.
” The same section of the Senate committee report included a description of the basic features of payday loans and the problems associated with them, specifically noting that many consumers are unable to repay the loans while meeting their other obligations and that many borrowers reborrow which results in a “perpetual debt treadmill.
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For the consumer, what is ostensibly a short-term loan may, contrary to the consumer's original expectations, result in long-term debt.
Most important, says McKeever, "Outline the legal responsibilities of both parties and when and how the money should be paid back.
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