scholarly journals Are Information Disclosure Mandates Effective? Evidence from the Credit Card Market

2014 ◽  
Author(s):  
Enrique Seira ◽  
Alan Elizondo
Keyword(s):  
Information Disclosure ◽  
Credit Card ◽  
Credit Card Market

scholarly journals Are Information Disclosures Effective? Evidence from the Credit Card Market

2017 ◽  
Vol 9 (1) ◽  
pp. 277-307 ◽  
Author(s):  
Enrique Seira ◽  
Alan Elizondo ◽  
Eduardo Laguna-Müggenburg
Keyword(s):  
Financial Markets ◽  
Information Disclosure ◽  
Credit Card ◽  
Large Population ◽  
Warning Messages ◽  
Credit Card Market ◽  
Credit Scores ◽  
Randomized Control ◽  
The Impact ◽  
Actual Policy

Consumer protection in financial markets in the form of information disclosure is high on government agendas, even though there is little evidence of its effectiveness. We implement a randomized control trial in the credit card market for a large population of indebted cardholders and measure the impact of Truth-in-Lending-Act-type disclosures, de-biasing warning messages and social comparison information on default, indebtedness, account closings, and credit scores. We conduct extensive external validity exercises in several banks, with different disclosures, and with actual policy mandates. We find that providing salient interest rate disclosures had no effects, while comparisons and de-biasing messages had only modest effects at best. (JEL D14, D83, G21, G28, O16)

scholarly journals Credit Card Rates and Consumer Switch: New Evidence

2016 ◽  
Vol 8 (12) ◽  
pp. 95
Author(s):  
Omar A. Abdelrahman
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Credit Card ◽  
Percent Level ◽  
Empirical Finding ◽  
Credit Cards ◽  
Credit Card Market ◽  
The Ohio State University ◽  
Using Data ◽  
Level Of Significance

This paper investigates the underlying determinants of consumer’s choices regarding switching credit-card balances. To estimate the likelihood that consumers switch credit cards, two logit models are estimated. Using data from the Consumer Finance Monthly (CFM) of The Ohio State University, the author finds that at the conventional 5 percent level of significance, the following variables have significance: old interest rate, new interest rate, duration of the introductory rate, balances, number of credit cards, homeownership, and age. As expected, interest rates, balances, the duration of new introductory offer rates, and homeownership have the greatest influence on why or why not people switch credit cards. The findings are consistent with the view that consumers make rational decisions in the credit card market, challenging Ausubel’s (1991) argument of credit card consumer irrationality and Calem and Mester’s (1995) empirical finding that credit card rates are sticky because consumers are irresponsive to rate cuts.

scholarly journals The Issue and Risk Analysis of the Credit Card

2021 ◽  
pp. 615-617
Author(s):  
Dhartee Ghawale ◽  
Pratiksha Gharde ◽  
Ashvini Bagade ◽  
N. Lakshmanan ◽  
Prof. Omkar Dudhbure
Keyword(s):  
Risk Analysis ◽  
Credit Card ◽  
Credit Rating ◽  
Rapid Development ◽  
Rating System ◽  
Credit Card Market

In order to systematically evaluate credit card risk, opportunities for specific action and activity are used on paper. Based on the rapid development of the local credit card market, the current risks of the application and the issue of the credit card are discussed. With a credit card application using a credit card, a situation may arise where a customer may wish to repay the loan on time. In addition, the credit rating system, marketing and approval method, credit card overpayment, incentive orders and penalties, use management and other related angles are considered to solve the credit card risk problem.

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