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A payday loan is on unsecured terms
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In the HPML Rule, the Federal Reserve Board discussed how subprime consumers “accept loans knowing they may have difficulty affording the payments because they reasonably believe a more affordable loan will not be available to them,” how “taking more time to shop can be costly, especially for the borrower in a financial pinch,” and how because of these factors “borrowers often make a reasoned decision to accept unfavorable terms.
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