scholarly journals Payday Lending

2007 ◽  
Vol 21 (1) ◽  
pp. 169-190 ◽  
Author(s):  
Michael A Stegman
Keyword(s):  
Interest Rate ◽  
The State ◽  
Payday Lending ◽  
Short Term ◽  
Payday Loans ◽  
Ready Access

A “payday loan” is a short-term loan made for seven to 30 days for a small amount. Fees charged on payday loans generally range from $15 to $30 on each $100 advanced. A typical example would be that in exchange for a $300 advance until the next payday, the borrower writes a post-dated check for $300 and receives $255 in cash—the lender taking a $45 fee off the top. The lender then holds on to the check until the following payday, before depositing it in its own account. When the fee for a short-term payday loan is translated into an annual percentage rate, the implied annual interest rate ranges between 400 and 1000 percent. Virtually no payday loan outlets existed 15 years ago; today, there are more payday loan and check cashing stores nationwide than there are McDonald's, Burger King, Sears, J.C. Penney, and Target stores combined. For economists, several interesting issues arise in the study of payday loans: Is this just a situation in which willing customers and firms interact in the market for ready access to high-cost, short-term credit? Or does the payday loan industry encourage habitual borrowing and the snowballing of unaffordable debt in such a way that the state has a role to play in limiting consumers from their own excesses? Would a ban or overly restrictive regulations on payday lending just revive the market for loan-sharking? And what of a similar practice by mainstream banks, who regularly allow their customers to overdraw their checking accounts if they pay a fee comparable in size to a payday loan charge?

Protecting the Desperate: The Regulation of Payday Lending

2015 ◽  
Vol 43 (1) ◽  
pp. 147-176
Author(s):  
Andrew J Serpell
Keyword(s):  
Consumer Credit ◽  
Law Reform ◽  
Payday Lending ◽  
Short Term ◽  
Payday Loans ◽  
The Law ◽  
The Right ◽  
Credit Contracts ◽  
The Cost

Payday loans are small-amount, short-term, unsecured, high-cost credit contracts provided by non-mainstream credit providers. Payday loans are usually taken out to help the consumer pay for essential items, such as food, rent, electricity, petrol, broken-down appliances or car registration or repairs. These consumers take out payday loans because they cannot — or believe that they cannot — obtain a loan from a mainstream credit provider such as a bank. In recent years there has been a protracted debate in Australia — and in several overseas jurisdictions — about how to regulate the industry. Recent amendments to the National Consumer Credit Protection Act 2009 (Cth) — referred to in this article as the 2013 reforms — are designed to better protect payday loan consumers. While the 2013 reforms provide substantially improved protection for payday loan consumers, further changes to the law may be warranted. This article raises several law reform issues which should be considered as part of the 2015 review into small amount credit contracts, including whether the caps on the cost of credit are set at the right level, whether the required content and presentation of the consumer warnings needs to be altered, whether more needs to be done to protect consumers who are particularly disadvantaged or vulnerable and whether a general anti-avoidance provision should be included in the credit legislation.

scholarly journals Determinants Factors of Interest Rates on Three-Month Deposits of Bank Persero

JEJAK ◽  
2017 ◽  
Vol 10 (1) ◽  
pp. 90-102
Author(s):  
Tedy Kurniawan ◽  
Sucihatiningsih Dian Wisika Prajanti
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Money Supply ◽  
The State ◽  
Capital Adequacy ◽  
Short Term ◽  
Operating Income ◽  
Short And Long Term ◽  
The Interest Rate

This research aims at analyzing the influence of Capital Adequacy Ratio (CAR), Operating Expenses of Operating Income (BOPO), inflation, exchange rate, and the amount of money supply (M1) to the interest rate of three month deposits of the State-Owned Bank in Indonesia in 2007-2015. This research uses the error correction model analysis. The result obtained is the CAR that has a significant effect on the long term and has no effect on the short term, BOPO has a significant influence on the long term and short term, inflation has the significant effect on the long term and has no effect on the short term, the exchange rate has an influence on the short and long term, the money supply has no effects on the short and long-term on the interest rate on three month deposits of the State-Owned Bank.

scholarly journals Rynek pożyczek pozabankowych w Polsce w świetle polityki niskich stóp procentowych banku centralnego

2015 ◽  
Vol 1 (3) ◽  
pp. 119-135 ◽  
Author(s):  
Anna Szelągowska
Keyword(s):  
Interest Rates ◽  
Social Life ◽  
Banking Sector ◽  
Payday Lending ◽  
Short Term ◽  
Payday Loans ◽  
Research Hypothesis ◽  
Alternative Sources

A large part of the society is still financially excluded from social life despitethe era of low or zero interest rates. Banks are not interested in rendering servicesto customers of limited means. In consequence, citizens excluded from the bankingsector are searching for the alternative sources to satisfy their financial needs.Money is supplied by payday loan providers which offer usurious short term loansat prices many times higher than bank prices. The article answers the followingresearch question: Is the payday lending market winning the competition withthe banking sector in Poland and if so, what is the reason in era of historic lowbasic interest rates and incomparably higher total costs of payday loans? Thefollowing research hypothesis was verified in the study: the lack of supervisionover payday loan companies in Poland contributes to usurious exploitation ofthe people excluded by banks, which results in a debt spiral for a considerablesegment of customers.

The Dynamics of the Short-Term Interest Rate in the UK

2005 ◽  
Author(s):  
Diether W. Beuermann ◽  
Antonios Antoniou ◽  
Alejandro Bernales
Keyword(s):  
Interest Rate ◽  
Short Term ◽  
The Uk

Plebiscitary Politics and the Threats to Legality

2019 ◽  
pp. 275-289
Author(s):  
Claudius Härpfer
Keyword(s):  
The State ◽  
Short Term ◽  
Political Processes ◽  
The Face ◽  
State Of Affairs ◽  
The Relationship

In recent times we find many plebiscitary acts that seek to democratically legitimize political processes in any direction. They have in common that they interrupt the normal routine of representative democracies to a certain degree and create an extra-daily state of affairs, which entails not only direct but also indirect consequences. The text attempts to systematize some of these mechanisms from a Weberian perspective using Brexit as an example. After a brief overview of Weber’s short-term politically inspired statements on plebiscitary democracy, the text systematizes Weber’s understanding of the state as a bureaucratic apparatus that requires any kind of leader to be controlled. Subsequently, the text discusses the relationship between domination, legality, and rationality in order to finally point out the danger of erosion of truth and legality through the emergence of competing consensus communities in the face of competing conceptions of order.

A Note Concerning the Dynamics of Government Bond Yields

2021 ◽  
pp. 056943452098827
Author(s):  
Tanweer Akram
Keyword(s):  
Interest Rate ◽  
Financial Markets ◽  
Yield Curve ◽  
Empirical Studies ◽  
State Theory ◽  
Government Bond ◽  
Bond Yields ◽  
Short Term ◽  
Government Bonds

Keynes argued that the central bank can influence the long-term interest rate on government bonds and the shape of the yield curve mainly through the short-term interest rate. Several recent empirical studies that examine the dynamics of government bond yields not only substantiate Keynes’s view that the long-term interest rate responds markedly to the short-term interest rate but also have relevance for macroeconomic theory and policy. This article relates Keynes’s discussions of money, the state theory of money, financial markets, investors’ expectations, uncertainty, and liquidity preference to the dynamics of government bond yields for countries with monetary sovereignty. Investors’ psychology, herding behavior in financial markets, and uncertainty about the future reinforce the effects of the short-term interest rate and the central bank’s monetary policy actions on the long-term interest rate. JEL classifications: E12; E40; E43; E50; E58; E60; F30; G10; G12; H62; H63

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