Consumer Bureau Report Highlights Debt Trap Caused by Payday, Title Loans

The Consumer Financial Protection Bureau (CFPB) recently released a report on payday, car title, and pawn loans. The report demonstrates that once consumers take out one of these loans, they end up in a cycle of debt that can last a year or more.

The report notes that consumers frequently roll over these loans or take out a new loan soon after re-paying the previous loan. In June 2019, of the consumers who had taken out a loan in the previous six months, 63 percent still owed money on a payday loan; 83…