Only 1 state changed its regulations regarding minimum or maximum loan term: Virginia raised its minimum loan term from 1 week to 2 times the size of the debtor’s pay period. Assuming a pay that is standard of a couple of weeks, this raises the effective restriction by about 21 days. The column that is third of 5 quotes that loan size in Virginia increased almost 20 times an average of as an outcome, suggesting that the alteration had been binding. OH and WA both display more changes that are modest typical loan term, though neither directly changed their loan term laws and Ohio’s modification had not been statistically significant.
All six states saw changes that are statistically significant their prices of loan delinquency.
The biggest modification took place Virginia, where delinquency rose almost 7 portion points more than a base price of approximately 4%. The evidence that is law-change a connection between cost caps and delinquency, in keeping with the pooled regressions.