Keys for Collateral: How Auto-Title Loans Have Become Another Vehicle for Payday Lending in Ohio

Policy Matters has conducted research on payday lending in Ohio for the last five years. Most recently, two new forms of payday lending have taken hold in Ohio, which involve using a title for an automobile as collateral and lending under a statute meant for credit repair

Credit on Wheels: The Law and Business of Auto-Title Lending

Despite the fact that they are used by millions of Americans, auto-title loans have received little attention in the legal literature about consumer credit. Friends and foes of title lending make confident statements about their net welfare effects, but we still lack empirical data on many of the central policy questions that title lending raises. This Article offers new evidence about the title lending transaction, paying special attention to the risks borrowers face when they use their vehicles as collateral for the loan. I gathered this evidence by obtaining new reports from state regulators about the title lending industry, examining public disclosure statements by title lenders, interviewing title lenders, and surveying a small group of title lending customers. Additionally, the Article organizes the different legal responses to title lending, creating a taxonomy of regulatory approaches. Based on the new data uncovered by my research, I offer tentative evaluations of these diverse regulatory strategies

Costly financial intermediation in neoclassical growth theory

The neoclassical growth model is extended to include costly intermediated borrowing and lending between households. This is an important extension as substantial resources are used in intermediating the large amount of borrowing and lending between households. In 2007, in the United States, the amount intermediated was 1.7 times GNP, and the resources used in this intermediation amounted to at least 3.4 percent of GNP. The theory implies that financial intermediation services are an intermediate good and that the spread between borrowing and lending rates measures the efficiency of the financial sector. ; This paper was previously published as Working Paper 655 and Staff Report 405 under the title "Intermediated Quantities and Returns."

Dude, Where\u27s My Car Title?: The Law, Behavior, and Economics of Title Lending Markets

Millions of credit-constrained borrowers turn to title loans to meet their liquidity needs. Legislatures and regulators have debated how to best regulate these transactions, but surprisingly, we still know very little about the customers who use title loans. This Article reports findings from the first large-scale academic study of title lending customers. We surveyed over 400 title lending customers across three states and obtained information about customers’ demographic and behavioral characteristics. Based on the results of our survey and guided by insights from behavioral economics, this Article seeks to reframe the title lending debate. Instead of focusing on the risks and consequences of borrowers’ cars being repossessed, as the vast bulk of the literature does, we argue that the primary problem that most borrowers face is underestimating the true cost of taking out a title loan. Borrowers’ survey responses demonstrate that many borrowers are overly optimistic and experience self-control problems that affect their ability to make timely loan payments. We argue that these deviations from the assumptions of classical economics do not warrant an outright ban of title lending, but they do provide room for policy interventions. Policymakers can improve efficiency in title lending markets by requiring lenders to disclose to consumers the likely experiences they will have with their title loans rather than merely requiring lenders to communicate pricing information

No Right Turn: Illinois' Auto Title Loan Industry and its Impact on Consumers

This study examines the auto title lending industry in Illinois. Auto title loans are a type of high-cost, small-dollar loan. They are similar to payday loans, but are secured by the title to the borrower's automobile. Title lenders operate in 25 states across the country, and each year an estimated two million American consumers take out title loans. This report examines data from two reports on the consumer lending industry released by the Illinois Department of Financial and Professional Regulations (IDFPR) and loan-level data from court records of collection cases filed in Cook County

Bank lending and contagion

노트 : Volume Title: Regional and global capital flows: Macroeconomic causes and consequencesChapter Title: Bank lending and contagion: Evidence from the Asian crisi

Price discrimination on syndicated loans and the number of lenders : empirical evidence from the sovereign debt syndication

Syndicated loans and the number of lending relationships have raised growing attention. All other terms being equal (e.g. seniority), syndicated loans provide larger payments (in basis points) to lenders funding larger amounts. The paper explores empirically the motivation for such a price discrimination on sovereign syndicated loans in the period 1990-1997. First evidence suggests larger premia are associated with renegotiation prospects. This is consistent with the hypothesis that price discrimination is aimed at reducing the number of lenders and thus the expected renegotiation costs. However, larger payment discrimination is also associated with more targeted market segments and with larger loans, thus minimising borrowing costs and/or attempting to widen the circle of lending relationships in order to successfully raise the requested amount. JEL Classification: F34, G21, G33 This version: June, 2002. Later version (october 2003) with the title: "Why Borrowers Pay Premiums to Larger Lenders: Empirical Evidence from Sovereign Syndicated Loans" : http://publikationen.ub.uni-frankfurt.de/volltexte/2005/992

\u27A Blood-Stained Corpse in the Butler\u27s Pantry’: The Queensland Bush Book Club

Lending libraries were not the norm in 1934 when the Carnegie Corporation of New York sent American librarian, Ralph Munn, to conduct a study of the condition of Australian libraries. In his initial survey Munn learned of the Queensland Bush Book Club, an organization of well-to-do, philanthropic women from Brisbane who had established a book lending service for settlers in the Outback. They hoped to ease the drudgery and lighten the burden faced by isolated women and their families in the rural areas. The antidote was a regular parcel of “proper” reading matter which included books, newspapers and magazines. They took advantage of a well-developed railway system to deliver the packages to rural families. Testimonials found in the Queensland Bush Book Club annual reports provide a snapshot of frontier life detailing drought, fire, flood and all manner of misfortune and privation. The reports also offer specifics of the type of books the settlers requested and the gratitude with which the parcels were received. Murder mysteries were at the top of the request list, as the title of this article suggests. This article also examines the relationships forged between town and country residents around the distribution of books, and the mechanics involved in providing a book lending service before free public libraries became commonplace

Dampak Penurunan Suku Bunga Kredit terhadap Penyaluran Kredit di LPD Kuta Saat Pandemi Covid-19

LPD is one of the institutional elements of Customary Villages that carry out the functions of customary village finance to manage village financial potential. The purpose of the activities carried out are to determine the impact of lowering lending rates on lending, knowing the causes of lowering lending rates on lending, and knowing the solutions used to overcome the impact of reducing lending rates on lending. The method used in this street vendor activity is in the form of a review method where the review begins with the stage of searching for the title and location, searching for data, and conducting an analysis to find out how the impact of lowering lending rates on lending. The results obtained from the implementation of this activity are the impact of a decrease in lending rates on lending that is decreasing lending in Kuta LPD, the cause is due to the absence of the public or customers who do credit during Pandemic Covid-19 or in other words the demand declining credit, and delaying interest payments and socializing the importance of saving into a solution that must be done

The Application of Real Estate as Loan Collateral in Nigeria’s Banking Sector

The recent reforms in Nigeria’s banking sector have underscored the need for due diligence in lending. The study investigates the application of real estate as loan security to establish the extent and process of its use by commercial banks in Nigeria. Questionnaire survey was used to elicit response from a sample of commercial banks selected randomly. The findings demonstrate that real estate is the most widely used collateral instrument and banks follow due process in its application as collateral. However, the use is hindered by documentation and foreclosure problems. The findings are consistent with literature that real estate plays a significant role in secured lending, especially in developing countries. Overall, the borrower’s title to the collateral, the nature and quality of the title as well as the value of the real estate are important considerations when banks apply real estate as loan collateral. Thus, real estate, and especially property values, land titles and records are significant factors in contemporary Nigeria’s bank lending and with the greater emphasis on the security of credit, real estate is likely to assume even more vital role. Key words: Bank lending, Banking sector, Collateral, Real estate, Secured credit transaction