19 Feb Do payday loans exploit the indegent? By concentrating on states with state-run alcohol monopolies
“The effectation of State Bans of Payday Lending on Consumer Credit Delinquencies.” Desai, Chintal A.; Elliehausen, Gregory.
Abstract: “The debt trap theory implicates payday advances as a factor exacerbating customers’ economic distress. Consequently, limiting usage of pay day loans will be expected to reduce delinquencies on main-stream credit items. We try out this implication of this theory by analyzing delinquencies on revolving, retail, and credit that is installment Georgia, new york, and Oregon. These states paid down option of pay day loans by either banning them outright or capping the charges charged by payday loan providers at a level that is low.