The report highlighted potential risks for lenders as well as borrowers. If a borrower had one payday loan, he or she could struggle with other debts, potentially leading to stressed household finances, more subprime borrowing and even default, the report said.

The report also illustrated that one in seven job seekers with blemished credit had been passed over for employment after a credit check. In a figure modeling a hypothetical borrower who underwent a foreclosure, the credit score damage alone led to an extra $3,760 paid on a typical auto loan and almost $55,000 more paid on the typical mortgage.

“For borrowers victimized by predatory practices, the costs are high, compounding, and long-lasting” Wolff continued. “And this is especially troubling when considering that predatory lending disproportionately impacts lower-income families – contributing significantly to the widening of this country’s wealth gap.”

“What’s clear is that the impact of financial products on American consumers is much more nuanced – and much more serious – than we ever imagined,” Mike Calhoun, CRL president said. “This is why the existence of a consumer-focused, consumer protection agency is so critical. Debt and financial products play a profound role in American households – a role that is complex, a role that is crucial, but also one that poses significant risks to individuals, communities, and our economy; policymakers can and should lead the way to ensure that all financial products are affordable, safe and fair.”