Consumer credit and the American economy / Thomas A. Durkin, Gregory Elliehausen, Michael E. Staten, and Todd J. Zywicki.

Format:

Book

Author/Creator:

Durkin, Thomas A.

Contributor:

Elliehausen, Gregory E.

Staten, Michael E.

Zywicki, Todd J.

Series:

Financial Management Association survey and synthesis series

Language:

English

Subjects (All):

Consumer credit--United States.

Consumer credit.

Consumer credit--Government policy--United States.

Consumer credit--Government policy.

United States--Economic conditions.

United States.

Economic conditions.

Physical Description:

xxi, 710 pages ; 25 cm.

Place of Publication:

New York : Oxford University Press, 2014.

Contents:

1 Introduction and Overview of Consumer Credit: Development, Uses, Kinds, and Policy Issues 1

Consumers and Their Credit 3

Types of Consumer Credit 9

Institutional Sources of Consumer Credit 22

Consumer Credit and Public Policy 31

2 Consumer Credit in the Postwar Era 34

The Credit Growth Context 36

Debt Burden and Spending 39

Growth of Consumer Credit 45

Studies of Long-Term Trends 51

Distribution of Consumer Credit Use 67

Consumer Credit and the News Media 84

Conclusions 86

3 The Demand for Consumer Credit 88

Emergence of Modern Consumer Credit 89

Development of the Economics of Consumer Credit Demand 91

Conclusions 123

4 Behavioral Analysis and the Demand for Consumer Credit 124

Cognitive Models of Consumers' Credit Decisions 126

Rationality of Credit Card Debt 155

Conclusions 171

5 The Supply of Consumer Credit 173

Financial Intermediation 174

Costs of Consumer Lending 179

Empirical Evidence on Costs of Consumer Lending 183

The Loan Offer Curve, Default Risk, and Credit Rationing 202

Risk Evaluation and Credit Scoring 216

Funding and Securitization 229

Appendix: The Jaffee-Modigliani Model of the Loan Offer Curve 238

6 Credit Reporting 241

Conceptual Foundation for the Emergence of Credit Reporting 242

The Credit Reporting System and Its Regulation in the United States 246

Comprehensive Credit Reporting and Creditor Decision Making 256

Benefits from Comprehensive Full-File Reporting Systems 266

Data Quality Issues and Implications for Credit Scoring 273

7 Consumer Credit and the Payments System: Evolution of the Credit Card 287

The Card Context 290

Consumers' Attitudes toward and Understanding of Credit Cards 307

Credit Card Account Performance 331

Profitability of Credit Card Plans 342

Conclusions 348

Appendix: Sample of Card Accounts 348

8 Credit for All? Issues and Concerns about Credit Availability 351

Use of Credit Products with High Annual Percentage Rates 352

Credit Use and Younger Consumers 395

Overreaching and "Predatory Lending" 408

9 Federal Regulation of Consumer Credit: Credit Granting Discrimination 415

Consumer Protection 416

Fairness in Credit Granting: Equal Credit Opportunity 418

Economic Theory of Discrimination 425

Fair Lending Impact of Credit Scoring 449

Evidence from Mortgage Credit Markets 451

10 Federal Regulation of Consumer Credit: Disclosures 453

Federal Financial Disclosure Laws 455

Growth of Truth in Lending 464

Evaluating Truth in Lending as a Consumer Protection 469

Other Financial Consumer Protections 480

11 State Regulation of Consumer Credit 482

Interest Rate Ceilings 483

Economic Effects of Interest Rate Regulation 498

Market Adjustments to Rate Ceilings 511

Creditors' Remedies and Collection Practices 519

Political Economy of Regulation of Interest Rates and Creditors' Remedies 533

12 A Complement and a Supplement to Consumer Credit: Debt Protection an Automobile Leasing 542

Credit Insurance and Other Debt Protection 542

Consumer Automobile Leasing 570

13 Troubled Consumers: Bankruptcy and Credit Counseling 583

Bankruptcy 583

Nonbankruptcy Alternatives for Financially Distressed Consumers 624

14 Conclusions 635.

Notes:

Includes bibliographical references (pages 641-681) and index.

ISBN:

9780195169928

0195169921

OCLC:

879538747