Journal Article

Weighing the Costs of Payday Lending Restrictions

Abstract: The Dallas Fed talks with Kelly D. Edmiston, a senior economist at the Federal Reserve Bank of Kansas City, about his journal article titled “Could Restrictions on Payday Lending Hurt Consumers?” In the article, Kelly D. Edmiston examines payday lending and provides new empirical evidence on how lending restrictions in the industry affect consumers. His analysis shows that restrictions deny some consumers access to credit, limit the ability to maintain formal credit and force residents to sometimes seek even costlier credit alternatives. n his report, Edmiston cautions policymakers about the dangers of unintended consequences when restricting payday lending and recommends that they weigh the potential costs against the potential benefits.

Keywords: Payday lending;

Bibliographic Information

Provider: Federal Reserve Bank of Dallas

Part of Series: e-Perspectives

Publication Date: 2012

Volume: 12

Issue: 2

Order Number: 2