Payday Credit Access and Household Financial Health: Evidence from Consumer Credit Records

2012 ◽  
Author(s):  
Neil Bhutta
Keyword(s):  
Consumer Credit ◽  
Financial Health ◽  
Credit Access

scholarly journals The Impact of Consumer Credit Access on Unemployment

2019 ◽  
Vol 86 (6) ◽  
pp. 2605-2642 ◽  
Author(s):  
Kyle F Herkenhoff
Keyword(s):  
Business Cycles ◽  
Consumer Credit ◽  
Quantitative Result ◽  
Credit Access ◽  
Access To Credit ◽  
Employment Dynamics ◽  
Cyclical Fluctuations ◽  
The Business Cycle ◽  
The Impact ◽  
Revolving Credit

Abstract Unemployed households’ access to unsecured revolving credit more than tripled over the last three decades. This article analyses how both cyclical fluctuations and trend increases in credit access impact the business cycle. The main quantitative result is that credit expansions and contractions have contributed to moderately deeper and more protracted recessions over the last 40 years. As more individuals obtained credit from 1977 to 2010, cyclical credit fluctuations affected a larger share of the population and became more important determinants of employment dynamics. Even though business cycles are more volatile, newborns strictly prefer to live in the economy with growing, but fluctuating, access to credit markets.

Loan sharking: changing patterns in, and challenging perceptions of, an abuse of deprivation

2019 ◽  
Author(s):  
Patrick Saunders
Keyword(s):  
Consumer Credit ◽  
Descriptive Analysis ◽  
Credit Unions ◽  
Predatory Lending ◽  
Financial Health ◽  
Social Interventions ◽  
Causative Factors ◽  
Changing Patterns ◽  
Negative Impacts ◽  
Political Economic

Abstract Background Illegal high interest lending or ‘loan sharking’ exploits the vulnerable and has profound negative impacts on individuals and communities. The 2008 UK financial crash and subsequent austerity programme coupled with changes in the consumer credit market have fuelled an increase in predatory lending. Methods The study is a descriptive analysis of demographic, financial, health and behavioural data on 753 victims (2011–2017). A review of the causative factors and potential political, economic and public health responses is analysed. Results Most victims were female but males were considerably more indebted. Illegal loans are largely taken out for routine living expenses and over 70% of victims reported other serious debts. Victims are disproportionately poor, unemployed and on benefits but fewer than half have had financial or benefits advice. Despite 90% reporting they would not borrow illegally again, 30% had previously done so from the same shark and over half considered them a friend. Conclusions The increase in loan sharking has coincided with the withdrawal of traditional sub-prime lenders and local welfare assistance schemes, and the low penetration of Credit Unions in many areas. Conventional perceptions of loan sharks and their relationships with victims are largely incorrect. A range of coordinated financial, political and social interventions is required.

scholarly journals More paternalism in the regulation of consumer financial investments? Private sector duties and public goods analysis

Legal Studies ◽  
2021 ◽  
pp. 1-19
Author(s):  
Iris H-Y Chiu
Keyword(s):  
Public Goods ◽  
Consumer Credit ◽  
Financial Health ◽  
Public And Private ◽  
Point Of Sale ◽  
The Public ◽  
The Social ◽  
Financial Investments ◽  
Retail Investors ◽  
The Uk

Abstract Paternalistic forms of regulation for the retail investment market have been gradual and restrained, even though significant gaps exist between investors’ needs and market-based provision. As ordinary citizens reckon with a variety of savings needs and become financial citizens responsible for their own financial welfare provision, financial health is not merely an issue of individual fortunes but a social need. Adverse financial welfare consequences can at scale become a social issue, as is reflected in the social demands and critique entailing from the collapse of London and Capital Finance in the UK. The need for more regulatory paternalism goes beyond preventing mis-selling, and the outworking of welfare beyond point-of-sale remains relatively unconsidered. Post-sale welfare is, however, increasingly recognised for consumer credit and is slower to catch on in relation to savings needs and investments. This paper advocates that the regulator should not remain ambivalent about the need for more paternalistic interventions. Paternalistic protection is not only about shifting more burdens to the industry but also about the provision of public goods where there are standardised baseline needs for retail investors. This paper unpacks the roles of both the public and private sectors in addressing retail investors’ financial welfare needs.

scholarly journals The Impact of Consumer Credit Access on Employment, Earnings and Entrepreneurship

2016 ◽  
Author(s):  
Kyle Herkenhoff ◽  
Gordon Phillips ◽  
Ethan Cohen-Cole
Keyword(s):  
Consumer Credit ◽  
Credit Access ◽  
The Impact

Legitimating the Credit Infrastructure

Debtor Nation ◽  
2011 ◽  
Author(s):  
Louis Hyman
Keyword(s):  
Personal Responsibility ◽  
Consumer Credit ◽  
People Of Color ◽  
Equal Access ◽  
Credit Access ◽  
Access To Credit ◽  
Two Generations ◽  
The 1960S ◽  
Economic Future ◽  
High Social Status

This chapter discusses credit access. By the 1960s, credit access was deemed to be unequivocally beneficial. Credit use, far from marking one as immoral or unthrifty as it might have in the 1910s, denoted high social status and personal responsibility. In the 1960s, those without credit agitated for more “fair” or “equal” access. By the end of the decade, as access to credit became a social marker of independence and prosperity, various credit activists for women and people of color demanded access to credit. As such, congress passed laws to guarantee impartial access to credit. At the same time, these laws legitimated practices that would have seemed usurious two generations earlier. By the 1970s, consumer credit—legitimated as fair through federal policy—grew to an unprecedented volume and creditors extended it to all Americans with uncertain consequences for the country's economic future.

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