5 Conclusions

Overall, pooled cross-state regressions and within-state regressions law that is examining show an amazing level of contract. Both recommend the next conclusions about payday lending legislation: cost caps are usually strictly binding, size caps have a tendency to be less binding, and prohibitions on simultaneous borrowing seem to have small impact on the quantity lent. Minimal term restrictions affect loan size, but term that is maximum try not to. Delinquency appears definitely associated with greater cost caps. Rollover prohibitions and periods that are cooling-off also to greater cost caps, seem to lessen the regularity of perform borrowing.

Records on coding by form of regulation

Targeting states with legislation modifications, sc, Virginia, and Washington had been all in a position to notably cut their prices of perform borrowing. These modifications had been followed closely by significant upheavals, but, especially in Virginia and Washington where loan amount dropped sharply and, within the situation of Virginia, delinquency spiked and customer composition shifted. […]