| 来源类型 | Article |
| 规范类型 | 评论 |
| Reframing the debate about payday lending | |
| Michael R. Strain; Donald P. Morgan; Ronald J. Mann; Robert DeYoung | |
| 发表日期 | 2015-10-19 |
| 出版年 | 2015 |
| 语种 | 英语 |
| 摘要 | Except for the ten to twelve million people who use them every year, just about everybody hates payday loans. Their detractors include many law professors, consumer advocates, members of the clergy, journalists, policymakers, and even the President! But is all the enmity justified? We show that many elements of the payday lending critique—their “unconscionable” and “spiraling” fees and their “targeting” of minorities—don’t hold up under scrutiny and the weight of evidence. After dispensing with those wrong reasons to object to payday lenders, we focus on a possible right reason: the tendency for some borrowers to roll over loans repeatedly. The key question here is whether the borrowers prone to rollovers are systematically overoptimistic about how quickly they will repay their loan. After reviewing the limited and mixed evidence on that point, we conclude that more research on the causes and consequences of rollovers should come before any wholesale reforms of payday credit. Payday Loan Prices: High but Justified? The first complaint against payday lenders is their high prices: the typical brick-and-mortar payday lender charges $15 per $100 borrowed per two weeks, implying an annual interest rate of 391 percent! That’s expensive, to be sure, but is it unfair? For economists, the answer depends on whether payday credit markets are competitive: with healthy price competition, fees will be driven down to the point where they just cover costs, including loan losses and overhead. Click here to read the full text article. The full article will be published here on October 26th, 2015. |
| 主题 | Economics ; Tax Reform |
| URL | https://www.aei.org/articles/reframing-the-debate-about-payday-lending/ |
| 来源智库 | American Enterprise Institute (United States) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/259495 |
| 推荐引用方式 GB/T 7714 | Michael R. Strain,Donald P. Morgan,Ronald J. Mann,et al. Reframing the debate about payday lending. 2015. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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