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Payday loan direct lenders 100 acceptance under the proposed rule, lenders would not be able to make a covered longer-term loan during the term of and for 30 days following a prior covered short-term loan or covered longer-term balloon-payment loan unless the borrower's financial capacity has sufficiently improved or payments on the new loan would be substantially smaller than payments on the prior loan.
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The Bureau solicits comment on proposed § 1041.
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The report concerns a 2007 statute which required lenders to offer borrowers a no-cost repayment plan after the third balloon loan.
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