Car Title Loan Study

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A new study finds car title loans are putting one in five borrowers on the road to the repo man.
 
The study released today by the Consumer Financial Protection Bureau finds 20 percent of people who put their cars up as collateral for what are supposed to be short-term emergency loans, end up in repossession. 
 
The study also found more than four in five of the loans are renewed on the day they’re due and two-thirds are made to borrowers who end up taking out seven or more consecutive loans.
 
Car title loans are similar to payday loans except that the borrower puts their vehicle up for collateral with the lender holding the title as security.

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