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Consumer Financial Services Alert August 2016

Publication: Deceptive for Whom? The Implications of Behavioral Economics Driven Consumer Financial Services Policy

Behavioral economics interventions, which include policies such as mandated disclosure that target how consumers receive and process information, have received a fair bit of attention in consumer financial services. The Consumer Financial Protection Bureau (CFPB) has a history of engaging prominent scholars in behavioral economics.

In this article written for the ABA Consumer Financial Services Committee Newsletter, Dr. Xiaoling Ang and Dr. Stephen Bronars explore how behavioral economics research and literature is likely to affect the design, implementation, and enforcement of consumer financial services law.

Webinar: The CFPB's Proposed Payday and Small Dollar Rule from an Economist's Perspective
Wednesday, August 10, 2-3pm EST

Consumers’ payday and small loan decisions are inextricably tied to the unpredictability of work schedules, wages, and the timing of cash flows. For example, payday loans may be caused by small urgent expenses, such as an emergency car repair, or the lost income from missing work due to a car breakdown.

In this webinar, hosted by the ABA Consumer Financial Services Committee, Dr. Stephen Bronars and Dr. George Korenko will discuss how provisions of the CFPB’s proposed rule for payday loans are likely to interact with consumers’ borrowing decisions. They will also discuss the challenges facing payday lenders if they are required to measure the ability-to-repay a payday loan, the structure of the conditional exemption loans that are not subject to ability-to-repay, and how payday loans may compare to other sources of liquidity for consumers.

For further information, click here.

 

Download ABA Article

Behavioral Economics Driven Consumer Financial Services Policy

 

Experts


Dr. Stephen G. Bronars
Partner
DC Office
sbronars@edgewortheconomics.com
+1.202.580.7777


Dr. George Korenko
Partner
DC Office
gkorenko@edgewortheconomics.com
+1.202.559.4408

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