by Jeremy Webster | Feb 16, 2023 | Recent News - Tom Miller
Economic theory predicts that a binding interest-rate cap decreases credit availability for high-risk borrowers. On March 23, 2021, Illinois imposed an all-in interest-rate cap of 36 percent per annum for loans under $40,000 from non-bank and non-credit-union lenders....
by Jeremy Webster | Feb 16, 2023 | Recent News - Tom Miller
Using data for the last quarter of 2020 and first three quarters of 2021, the study examined the effects of the 36% rate cap imposed by the Illinois Predatory Loan Prevention Act which became effective in March 2021. The study found that the cap significantly...
by Jeremy Webster | May 14, 2019 | Mercatus Center Publications
We appreciate the opportunity to respond to the Bureau of Consumer Financial Protection’s (Bureau) proposed rule governing payday, vehicle-title, and certain high-cost installment loans. The Mercatus Center at George Mason University is dedicated to bridging the gap...
by Jeremy Webster | Apr 24, 2019 | Mercatus Center Publications
Millions of Americans rely on small-dollar, non-bank-supplied credit products: payday, pawn, vehicle title, and personal installment loans from finance companies. Many features of these vital products, however, are not well understood. This book contains explanations...
by Jeremy Webster | Mar 27, 2019 | Mercatus Center Publications
Recently the Consumer Financial Protection Bureau (CFPB) proposed to reexamine the role of payday lenders, which are consistently cast as the villains of the financial industry. Such a depiction makes it easy to forget that these lenders are helping millions of...
