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…“Payday loans can often appear to be a life raft for families facing an unexpected expense or just need a bit of cash to make ends meet before their next payday. However, all too often, borrowers soon discover these loans are a trap,” Michigan League for Public policy President Monique Stanton wrote in a letter to the state Senate Finance, Insurance, and Consumer Protection Committee, where the bill was considered.

As an August 2018 report from the Center for Responsible Lending noted, borrowers often take out loans consecutively, using one loan to pay off another. Meanwhile, interest piles up on each loan while the amount borrowed remains the same.

Read more at Michigan Public.

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