Can Voluntary Price Disclosures Fix the Payday Lending Market?

5 Pages Posted: 3 Apr 2016 Last revised: 22 Apr 2016

Jim Hawkins

University of Houston Law Center

Date Written: March 29, 2016

Abstract

This Response discusses Eric J. Chang’s article, www.PayDayLoans.gov: A Solution for Restoring Price-Competition to Short-Term Credit Loans. It offers some evidence from recent empirical research to suggest that the federally operated online exchange that Chang proposes for payday lending markets is unlikely to succeed in facilitating price competition. It argues that lenders are unlikely to voluntarily participate in the exchange and that, even if they did, many borrowers are unlikely to use the exchange.

Keywords: Payday Loans, Consumer Financial Protection Bureau

Suggested Citation

Hawkins, Jim, Can Voluntary Price Disclosures Fix the Payday Lending Market? (March 29, 2016). Harvard Business Law Review, Vol. 6, 2016; U of Houston Law Center No. 2016-A-7. Available at SSRN: https://ssrn.com/abstract=2756173

Jim Hawkins (Contact Author)

University of Houston Law Center ( email )

4604 Calhoun Road
Houston, TX 77204-6060
United States

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