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As discussed in part II, most States in which such lending takes place have established a maximum price for these loans.
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If the lender's portfolio default rate for covered longer-term loans made under this section exceeds 5 percent per year, the lender must, within 30 calendar days of identifying the excessive portfolio default rate, refund to each consumer that received a loan included in the calculation of the portfolio default rate any origination fee imposed in connection with the covered longer-term loan and excluded from the modified total cost of credit pursuant to paragraph of this section.
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