WASHINGTON — Four away from five those who sign up for a payday that is short-term either roll it over and take down a different one inside a fortnight, pressing them into a period of financial obligation, based on a report to be payday loans Herreid, SD online released Tuesday because of the customer Financial Protection Bureau.

Nearly 25 % of borrowers — 22% — renewed the loan at the least six times, causing them to finish up having to pay more in fees than they initially borrowed, the bureau stated within an analysis of 12 million loans produced by storefront cash advance organizations.

“We are concerned that too borrowers that are many in to the debt traps that payday advances can be,” said Richard Cordray, the bureau’s manager. Read more