The Law and Economics of Consumer Finance

Posted: 29 Feb 2008  

Richard M. Hynes

University of Virginia School of Law

Eric A. Posner

University of Chicago - Law School

Abstract

This survey of the law and economics of consumer finance discusses economic models of consumer lending and evaluates the major consumer finance laws in light of them. We focus on usury laws; restrictions on creditor remedies, such as the ban on expansive security interests; bankruptcy law; limitations on third-party defenses, such as the holder-in-due-course doctrine; information disclosure rules, including the Truth in Lending Act; and antidiscrimination law. We also discuss the empirical literature.

Suggested Citation

Hynes, Richard M. and Posner, Eric A., The Law and Economics of Consumer Finance. American Law and Economics Review, Vol. 4, No. 1, pp. 168-207, 2002. Available at SSRN: https://ssrn.com/abstract=874199

Richard M. Hynes (Contact Author)

University of Virginia School of Law ( email )

580 Massie Road
Charlottesville, VA 22903
United States
434-924-3743 (Phone)

Eric A. Posner (Contact Author)

University of Chicago - Law School ( email )

1111 E. 60th St.
Chicago, IL 60637
United States
773-702-0425 (Phone)
773-702-0730 (Fax)

HOME PAGE: http://www.law.uchicago.edu/faculty/posner-e/

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