The Outcomes for Consumers of Differing Approaches to the Regulation of Small Dollar Lending

January 9, 2017 | Research & Surveys

Anna Ellison (Policis)

ONE-PAGER: The Outcomes for Consumers of Differing Approaches to the Regulation of Small Dollar Lending

FULL STUDY: The Outcomes for Consumers of Differing Approaches to the Regulation of Small Dollar Lending

Abstract:

Policis, a London based think-tank focused on evidencebased policy making, explores the research questions of whether or not regulators achieve what they hope to intend, which approaches a regulator would deliver such outcomes, and what the unintended effects might be and on what scale. They conclude that the overall effect is that state regulatory regimes that overly restrict supply produce poor outcomes for consumers who move into the non-state regulated space, with a higher cost of credit and more problematic debt – and regulators thereby largely fail to achieve their aims