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The payment under the loan is $25.
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The cost of these types of loans may still be quite high, but credit unions cannot, by law, charge more than 28% APR for short term, small dollar loans.
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With this provision for smaller amounts, the lender could seek authorization for additional payment transfers for the payment amount that would be due if the consumer has drawn the full amount of remaining credit, and then would be permitted under the exception to initiate the transfers for amounts smaller than the specific amount, if necessary.
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