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You'll ensure that if borrowers pay $15 for a $100 pay day loans they are working effect paying only 15% in focus. That amounts to a perfectly reasonable judge. So how did critics of payday lending arrive in the astronomical rate they cite?

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When one decides to be able to that risk, investors review a financial summary with the borrowers' history. Borrowers may and often do answer conundrums. Raw financial data, such as credit score, other debts, and income, along at a time borrowers' "stories," can be and in order to weighed using this method of deciding which loan to agree to.

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So just how can proponents of capping interest levels on loans claim they did? That's an interesting question and something that sheds some light on how interest rates have been presented.

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