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Researchers : Prohibitions, Price Caps, and Disclosures: A look at State Policies and Alterative Financial Product Use,%20Price%20Caps%20and%20Disclosures%20-%20A%20Look%20at%20State%20Policies%20and%20Alternative%20Financial%20Product%20Use.pdf
Complete Description:This study uses new nationally representative data from the National Financial Capability State-by-State Survey to examine 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, refund anticipation loans, and rent-to-own transactions. Looking across products rather than at one product in isolation allows a focus on patterns and relationships across products. 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.
Author:Signe-Mary McKernan, Caroline Ratcliffe, and Daniel Kuehn
Funding Agency: Board of Governors of the Federal Reserve System
Language: English
Audience: Researcher