Do State Regulations Affect Payday Lender Concentration?

26 Pages Posted: 22 Mar 2015

See all articles by James R. Barth

James R. Barth

Auburn University; Milken Institute

Jitka Hilliard

Auburn University

John S. Jahera

Auburn University - Harbert College of Business

Yanfei Sun

Auburn University, Harbert College of Business, Department of Finance

Date Written: March 20, 2015

Abstract

Ten states and the District of Columbia prohibit the operation of payday loan stores, and thirty-one other states have imposed regulatory restraints on the controversial industry, ranging, for example, from caps on fees and loan amounts to the number of rollovers and renewals a borrower may execute. Given the importance of payday lenders to significant segments of the population, and the wide variation among state regulatory regimes, this paper attempts to assess the extent to which the concentration of payday lenders in a given county correlates to its regulatory environment, as well as to various financial and demographic variables. The paper employs a dataset that is unique to this area of study, obtained directly from each state’s appropriate regulatory authority.

Keywords: Payday Lending, Small Loans, Credit Issues

JEL Classification: G21, D10

Suggested Citation

Barth, James R. and Hilliard, Jitka and Jahera, John S. and Sun, Yanfei, Do State Regulations Affect Payday Lender Concentration? (March 20, 2015). Available at SSRN: https://ssrn.com/abstract=2581622 or http://dx.doi.org/10.2139/ssrn.2581622

James R. Barth

Auburn University ( email )

415 West Magnolia Avenue
Auburn, AL 36849
United States
334-844-2469 (Phone)
334-844-4960 (Fax)

Milken Institute ( email )

1250 Fourth Street
Santa Monica, CA 90401
United States

Jitka Hilliard (Contact Author)

Auburn University ( email )

415 Magnolia Ave.
Auburn, AL 36849
United States
334-844-5520 (Phone)

John S. Jahera

Auburn University - Harbert College of Business ( email )

415 Magnolia Ave.
Auburn, AL 36849
United States
334-844-5344 (Phone)

Yanfei Sun

Auburn University, Harbert College of Business, Department of Finance ( email )

Auburn, AL 36849
United States

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