“Our research provides evidence that is clear of problems automobile name loans pose for customers,” Cordray said in a declaration. “Instead of repaying their loan with a single repayment when it’s due, many borrowers wind up mired with debt for some of the season. The security damage may be particularly serious for borrowers that have their car seized, costing them prepared usage of their task or perhaps the doctor’s workplace.”
The newly released report examines almost 3.5 million payment that is single name loan documents from nonbank lenders from 2010 through 2013. It follows past CFPB studies of pay day loans and deposit advance items, which agency officials stated are being among the most analyses that are comprehensive made from these items.