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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This study uses nationally representative data from the 2009 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. 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 Economic mobility and inequality Wealth and financial well-being
Tags Asset and debts Income and wealth distribution Opportunity and ownership Financial stability
Policy Centers Metropolitan Housing and Communities Policy Center