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The World Bank data shows that South Africa has the highest proportion of borrowing from informal lenders among the poorest 40% of the population out of all the countries in the world, at 24%.
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The Bureau believes that most lenders that originate covered short-term loans do not currently collect information on applicants' major financial obligations, let alone verification evidence of such obligations, nor do they determine consumers' ability to repay a loan, as would be required under the proposed rule.
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