Payday-loan bans: proof of indirect results on supply

Payday-loan bans: proof of indirect results on supply

Styles in branch counts

Numbers 1, 2, 3, 4, and 5 display the styles in noticed running, opening, and shutting branches for payday loan providers, pawnbrokers, precious-metals dealers, small-loan loan providers, and second-mortgage lenders during the state-level by duration. corresponds to Period 1. The APR ban had been signed because of the state governor in Period 30, initially enacted in Period 33, last but not least effective in Period 35; these occasions are suggested in each figure because of the solid lines that are vertical.

From Fig. 1, the sheer number of running payday lending branches grows from durations 1 to 36 with a tiny reduction in Period 24. The range operating payday lenders stays high until Period 37. This will be two durations following the policy took impact and, most crucial, the time scale after which payday that is current licenses expired. Continue reading

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