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
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: Suggested Citation
Register to save articles to
your library
Recommended Papers
-
Payday Lenders: Heroes or Villains?
By Adair Morse
-
Restricting Consumer Credit Access: Household Survey Evidence on Effects around the Oregon Rate Cap
-
Do Payday Loans Cause Bankruptcy?
By Paige Marta Skiba and Jeremy Tobacman
-
Payday Loans, Uncertainty and Discounting: Explaining Patterns of Borrowing, Repayment, and Default
By Paige Marta Skiba and Jeremy Tobacman
-
Information Disclosure, Cognitive Biases and Payday Borrowing
By Marianne Bertrand and Adair Morse
-
Information Disclosure, Cognitive Biases and Payday Borrowing
By Marianne Bertrand and Adair Morse
-
Payday Holiday: How Households Fare After Payday Credit Bans
By Donald P. Morgan and Michael Strain
-
What do High-Interest Borrowers do with Their Tax Rebate?
By Marianne Bertrand and Adair Morse
