Pokaż uproszczony rekord

The Consumer Lending Protection. How to Prevent the Predatory Lending and “Debt Slavery” on the Small-Dollar Lending Market

dc.contributor.authorMazur, Zofia M.
dc.date.accessioned2023-01-09T06:45:53Z
dc.date.available2023-01-09T06:45:53Z
dc.date.issued2022-12-07
dc.identifier.issn2391-6478
dc.identifier.urihttp://hdl.handle.net/11089/45147
dc.description.abstractThe purpose of the article/hypothesis. The present contribution is focused on the lending market, its credit products, and actors, with particular regard to the non-bank small-dollar lenders and the underserved borrowers. The purpose is to analyze some of the specific small-dollar loans and related legislative initiatives from the American and European financial markets which may constitute remedies to the problem of predatory lending.Methodology. The analysis was based on the legal and administrative acts and documents as well as on the doctrine related to the topic examined.Results of the research. The study revealed that the misleading, abusive conducts and numerous sales strategies of professionals operating on the banking market may regard almost any individual. These unethical practices have intensified during the pandemic, becoming particularly dangerous.en
dc.language.isoen
dc.publisherWydawnictwo Uniwersytetu Łódzkiegopl
dc.relation.ispartofseriesFinanse i Prawo Finansowe;36pl
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0
dc.subjectfinancial consumer protectionen
dc.subjectsmall-dollar lendingen
dc.subjectpredatory lendingen
dc.subjectunbanked householdsen
dc.subjectCOVID-19en
dc.titleThe Consumer Lending Protection. How to Prevent the Predatory Lending and “Debt Slavery” on the Small-Dollar Lending Marketen
dc.typeArticle
dc.page.number71-91
dc.contributor.authorAffiliationLaw and Protection, University of Rome “Tor Vergata”en
dc.identifier.eissn2353-5601
dc.referencesAmerican Banker (2020a). Bank of America takes on payday lenders. https://www.americanbanker.com/articles/bank-of-america-takes-on-payday-lenders [Accessed 20.07.2022].en
dc.referencesAmerican Banker (2020b). CFPB makes it official rescinds Cordray era limits on payday lenders, https://www.americanbanker.com/news/cfpb-makes-it-official-rescinds-cordray-era-limits-on-payday-lenders [Accessed 20.07.2022].en
dc.referencesApgar, W.C. Jr. and Herbert, C.E. (2005). Subprime Lending and Alternative Financial Service Providers: A Literature Review and Empirical Analysis. Cambridge, MA: U.S. Department of Housing and Urban Development.en
dc.referencesAustralian Securities and Investments Commission (2016). Paying to get out of debt or clear your record: The promise of debt management firms, Report 465.en
dc.referencesBar-Gill, O. and Warren, E. (2008). Making Credit Safer. University of Pennsylvania Law Review, 1(11).en
dc.referencesBhutta, N., Goldin, J. and Hamonoff, T. (2016). Consumer Borrowing after Payday Loan Ban, Journal of Law and Economics, 59(1). http://dx.doi.org/10.1086/686033en
dc.referencesBertrand, M. and Morse, A. (2011). Information Disclosure, Cognitive Biases, and Payday Borrowing, The Journal of Finance, 66(6). http://dx.doi.org/10.1111/j.1540-6261.2011.01698.xen
dc.referencesBoard of Governors of the Federal Reserve System (2020). Report on the Economic Well-Being of U.S. Households in 2019, Featuring Supplemental Data from April 2020. https://www.federalreserve.gov/publications/files/2019-report-economic-well-being-us-households-202005.pdfen
dc.referencesCFA, Payday Loan Information For Consumers. Legal Status of Payday Loans by State. https://paydayloaninfo.org/state-information [Accessed 4.12.2021].en
dc.referencesCivic Consulting of the Consumer Policy Evaluation Consortium (2013). The over-indebtedness of European households: updated mapping of the situation, nature and causes, effects and initiatives for alleviating its impact – Part 1. https://ec.europa.eu/info/sites/info/files/final-report-on-over-indebtedness-of-european-households-synthesis-of-findings_december2013_en.pdf [Accessed 03.07.2022].en
dc.referencesConsumer Financial Protection Bureau (2020). Final Rule. Payday, Vehicle Title, and Certain Highcost Installment Loans.en
dc.referencesCampbell, J.Y., Jackson, H.W., Madrian, B.C. and Tufano, P. (2011). Consumer Financial Protection. The Journal of Economic Perspective, 25(1). http://dx.doi.org/10.1257/jep.25.1.91en
dc.referencesChen, V. (2020). Online Payday Lenders: Trusted Friends or Debt Traps? University of New South Wales Law Journal, 43(2). http://dx.doi.org/10.53637/XKSR8815en
dc.referencesCommunity Financial Service Association of America (2006). National Data on Short-term Credit Alternatives, http://www.cfsa.net/downloads/National_Data_on_short_term_Credit_Alternatives.pdf [Accessed 02.07.2022].en
dc.referencesEFIN Research Working Group on Over-Indebtedness (2018). Unfair Lending Practices and Toxic Loans, Finance Watch. https://www.finance-watch.org/wp-content/uploads/2018/12/EFIN-Unfair-Lending-Practices-and-Toxic-Loans-VF-6Dec.pdf [Accessed 30.06.2022].en
dc.referencesEngel, C.K. and McCoy, A.P. (2002). A Tale of Three Markets: The Law and Economics of Predatory Lending. Texas Law Review, 80(6). http://dx.doi.org/10.2139/ssrn.286649en
dc.referencesEuropean Parliament (2014). Consumer Protection Aspects of Financial Services. Study, PE 507.463.en
dc.referencesEuropean Commission (2018). Distribution systems of retail investment products across the European Union. Final Report.en
dc.referencesEvans, T. (2013), Wonga pushes up typical APR to 5,853 per cent – but says that means borrowers pay less for payday loans. https://www.thisismoney.co.uk/money/cardsloans/article-2345670/Wonga-pushes-typical-APR-5-853-cent--says-borrowers-pay-payday-loans.html [Accessed 20.07.2022].en
dc.referencesFDIC, Press Releases, Federal Agencies Encourage Banks, Savings Associations and Credit Unions to Offer Responsible Small-Dollar Loans to Consumers and Small Businesses Affected by COVID-19. https://www.fdic.gov/news/press-releases/2020/pr20039.htmlen
dc.referencesFDIC, Press Releases, Federal Agencies Share Principles for Offering Responsible Small-Dollar Loans. https://www.fdic.gov/news/press-releases/2020/pr20061.htmlen
dc.referencesFederal Trade Commission (2021). What to know about payday and car title loans. https://www.consumer.ftc.gov/articles/0249-online-payday-loans [Accessed 20.07.2022].en
dc.referencesFederal Deposit Insurance Corporation – FDIC (2020). The FDIC Survey of Household Use of Banking and Financial Services.en
dc.referencesFederal Deposit Insurance Corporation – FDIC (2018). The 2017 National Survey of Unbanked and Underbanked Households.en
dc.referencesFederal Deposit Insurance Corporation (2007). Financial Institution letters. https://www.fdic.gov/news/financial-institution-letters/2007/fil07050a.html [Accessed 20.07.2022].en
dc.referencesFinancial Health Network (2020a). Financially Undeserved Market Size Study 2019.en
dc.referencesFinancial Health Network (2020b). Financial Health Network Statement on the CFPB’s Rescission of 2017 Payday Rule.en
dc.referencesFinancial Services User Group – FSUG (2019). Responsible consumer credit lending. FSUG opinion and recommendations for the review of the Consumer Credit Directive. https://ec.europa.eu/info/sites/info/files/business_economy_euro/banking_and_finance/documents/fsug-opinions-190408-responsible-consumer-credit-lending_en.pdf [Accessed 02.07.2022].en
dc.referencesFitch, C., Hamilton, S., Basset, P. and Davey, R. (2011). The relationship between personal debt and mental health: A systemic review, Mental Health Review Journal, 16(4), http://dx.doi.org/10.1108/13619321111202313en
dc.referencesGuedj, I.S. (2019). Report Reviewing Research on Payday, Vehicle Title, and High-Cost Installment Loans. https://lawyerscommittee.org/wp-content/uploads/2019/05/Report-reviewing-research-on-payday-vehicle-title-and-high-cost-installment-loans.pdf [Accessed 27.06.2022].en
dc.referencesJérusalmy, O. (2020). What makes credit so risky? A consumer perspective, Finance Watch, https://www.finance-watch.org/wp-content/uploads/2019/06/What-makes-credit-so-risky_FW-paper_June2019.pdf [Accessed 27.06.2022].en
dc.referencesMann, J.R. and Hawkins, J. (2007). Just Until Payday. UCLA Law Review, 54.en
dc.referencesMarkowitz, H. (1952). The utility of wealth. Journal of Political Economy, 60(2), http://dx.doi.org/10.1086/257177en
dc.referencesMiller, W.T. Jr. (2019). How Do Small-Dollar, Nonbank Loans Work? Arlington, Virginia: The Mercatus Center at George Mason University.en
dc.referencesNational Consumer Law Center – NCLC (2019). What States can do to help consumer. High-Cost Loans.en
dc.referencesNational Consumer Law Center – NCLC (2014). Guidelines for Affordable Small Dollar Loans.en
dc.referencesPorter, K. (2009). The Credit Cure’, The Tobin Project, https://dcarpenter.scholar.harvard.edu/files/dcarpenter/files/fpsc-tobin.pdf [Accessed 22.06.2022].en
dc.referencesPrager, A.R. (2009). Determinants of the Locations of Payday Lenders, Pawnshops, and Check-Cashing Outlets. Working Paper No. 2009-33. Washington DC: Federal Reserve Board. Division of Research and Statistics and Monetary Affairs,en
dc.referencesPrelec, D. and Loewenstein, G. (1991). Decision Making over Time and under Uncertainty: A Common Approach. Management Science, 37(7). http://dx.doi.org/10.1287/mnsc.37.7.770en
dc.referencesPutney, B.A. (2003). Rules, Standards, and Suitability: Finding the Correct Approach to Predatory Lending. Fordham Law Review, 71(5).en
dc.referencesReifner, U., Clerc-Renaud, S. and Knobloch, R.M. (2010). Study on interest rate restriction in the EU: Final Report for the EU Commission DG Internal Market and Services. Brussels/Hamburg/Manheim: Institut für Finanzdienstleistungen E.V.en
dc.referencesResponsible Lending (2020) Case 1:20-CV-03122, https://www.responsiblelending.org/sites/default/files/nodes/files/research-publication/complaint-nalcab-v-cfpb-oct2020.pdf [Accessed 20.07.2022].en
dc.referencesSkiba, M.P. and Tobacman, J. (2019). Do Payday Loans Cause Bankruptcy? Journal of Law and Economics, 62(3). http://dx.doi.org/10.1086/706201en
dc.referencesStegman, M.A. and Faris, R. (2003). Payday Lending: A Business Model that Encourages Chronic Borrowing. Economic Development Quarterly, 17(1), http://dx.doi.org/10.1177/0891242402239196en
dc.referencesSweet, E., Kuzawa, C. and McDade, T. (2018). Short-Term Lending: Payday Loans as Risk Factors for Anxiety, Inflammation and Poor Health. SSM-Population Health, 5, http://dx.doi.org/10.1016/j.ssmph.2018.05.009en
dc.referencesThe New York Times, https://www.nytimes.com/2020/08/06/business/economy/unemployment-claims.htmlen
dc.referencesThe Pew Charitable Trusts (2020). How Virginia’s 2020 Fairness in Lending Act Reforms Small-Dollar Loans, https://www.pewtrusts.org/en/research-and-analysis/issue-briefs/2020/10/how-virginias-2020-fairness-in-lending-act-reforms-small-dollar-loans [Accessed 22.06.2022].en
dc.referencesThe Pew Charitable Trusts (2019). Prospects Rising for Lower-Cost Small-Dollar Loans. https://www.pewtrusts.org/en/research-and-analysis/articles/2019/10/09/prospects-rising-for-lower-cost-small-dollar-loans [Accessed 20.11.2022].en
dc.referencesThe Pew Charitable Trusts (2018). Standards needed for safe Small installment loans from banks, credit unions. https://www.pewtrusts.org/en/research-and-analysis/issue-briefs/2018/02/standards-needed-for-safe-small-installment-loans-from-banks-credit-unions [Accessed 25.06.2022].en
dc.referencesThe Pew Charitable Trusts (2012). Small Dollar Lending, 2nd Annual Consumer Research Symposium. https://www.fdic.gov/analysis/cfr/consumer/2012/bourke.pdf [Accessed 20.07.2022].en
dc.referencesWillis, L.E. (2017). The Consumer Financial Protection Bureau and the Quest for Consumer Comprehension. RSF: The Russell Sage Foundation Journal of the Social Sciences, 3(1).en
dc.referencesVirginia Fairness in Lending Act (2020). Senate Bill 421, House Bill 789, Virginia General Assem-bly. https://lis.virginia.gov/cgi-bin/legp604.exe?201+ful+CHAP1258 [Accessed 22.05.2022].en
dc.contributor.authorEmailzofiamaria.mazur@studio.unibo.it
dc.identifier.doi10.18778/2391-6478.4.36.05
dc.relation.volume4


Pliki tej pozycji

Thumbnail
Nazwa:
71-91_Mazur_Zofia_M.-The_consu ...
Rozmiar:
487.4KB
Format:
PDF
Oglądaj/Otwórz

Pozycja umieszczona jest w następujących kolekcjach

Pokaż uproszczony rekord

https://creativecommons.org/licenses/by-nc-nd/4.0
Poza zaznaczonymi wyjątkami, licencja tej pozycji opisana jest jako https://creativecommons.org/licenses/by-nc-nd/4.0