Prohibitions, Price Caps, and Disclosures: A Look at State Policies and Alternative Financial Product Use

The Urban Institute, November 2010

45 Pages Posted: 23 Jan 2013

See all articles by Signe-Mary McKernan

Signe-Mary McKernan

The Urban Institute - Center on Labor, Human Services and Population

Caroline E. Ratcliffe

The Urban Institute - Labor and Social Policy Center

Daniel Kuehn

Independent

Date Written: November 10, 2010

Abstract

Using new nationally representative data from the National Financial Capability State-by-State Survey, this paper examines the relationship between state-level alternative financial service (AFS) policies (prohibitions, price caps, disclosures) and consumer use of five AFS products: payday loans, auto title loans, pawn broker loans, RALs, and RTO transactions. The results suggest that more stringent price caps and prohibitions are associated with lower product use and do not support the hypothesis that prohibitions and price caps on one AFS product lead consumers to use other AFS products.

Keywords: Economy/Taxes, Families and Parenting, Poverty and Safety Net, Race/Ethnicity/Gender

Suggested Citation

McKernan, Signe-Mary and Ratcliffe, Caroline E. and Kuehn, Daniel, Prohibitions, Price Caps, and Disclosures: A Look at State Policies and Alternative Financial Product Use (November 10, 2010). The Urban Institute, November 2010. Available at SSRN: https://ssrn.com/abstract=2205766 or http://dx.doi.org/10.2139/ssrn.2205766

Signe-Mary McKernan (Contact Author)

The Urban Institute - Center on Labor, Human Services and Population ( email )

United States

Caroline E. Ratcliffe

The Urban Institute - Labor and Social Policy Center ( email )

2100 M Street, NW
Washington, DC 20037
United States
202-261-5548 (Phone)
202-463-8522 (Fax)

Daniel Kuehn

Independent

No Address Available

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