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As noted above, the Bureau believes that most covered longer-term loans would be originated under the ATR approach, as many current loan products that would be covered longer-term loans would not readily qualify for either the Portfolio or PAL approach.

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As discussed in Market Concerns—Short-Term Loans, however, the Bureau believes that the fact that covered short-term loans require repayment so quickly after consummation makes such loans more difficult for consumers to repay the loan consistent with their other major financial obligations and basic living expenses without needing to reborrow.

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