Research Report Prohibitions, Price Caps, and Disclosures: A Look at State Policies and Alternative Financial Product Use
Signe-Mary McKernan, Caroline Ratcliffe, Daniel Kuehn
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Using new nationally representative data from the National Financial Capability State-by-State Survey, this paper examines 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, RALs, and RTO transactions. 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.
Research Areas Wealth and financial well-being Families Social safety net Race and equity
Tags Low-Income Home Energy Assistance Program (LIHEAP) Asset and debts Economic well-being Racial and ethnic disparities Racial barriers to accessing the safety net