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The agency, created by the 2010 financial reform law, has complained that the short-term loans -- typically two-week advances on a paycheck -- can trap borrowers in a cycle of debt.

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One minister conceded yesterday that the combination of factors was likely to mean the NHS would need more money before the election, which is expected in 2017.

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Short-term credit agreements include loans not exceeding R8,000, which are repayable within a period of not more than six months.

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