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Payday lenders are often regarded as semi-respectable loan sharks, but some economists say the industry fills a legitimate need, and putting them out of business could hurt the very people, running short of cash between paydays but unable to get a bank loan, which the White House says it wants to help.

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The announcement of the directive came just house after the White House said it would not attempt to curtail federal education funding from North Carolina in response to the law there.

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