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Throughout the 2008 campaign that is presidential Barack Obama promised to "cap outlandish interest levels on pay day loans also to improve disclosure” for the short-term, high-interest loans. The administration has essentially achieved its goal after years of partisan wrangling.

First, some back ground. "Payday loans are small-dollar, short-term, short term loans that borrowers vow to settle from their next paycheck or regular earnings repayment," in accordance with the Federal Deposit Insurance Corporation. "Payday loans usually are coming in at a fee that is fixed-dollar.

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