This week we have discussed some of the
interesting facts our recent research has uncovered about the title lending
industry and its borrowers. One of the goals of our research is to use economics
tools, from both neo-classical and behavioral economics, to develop a broader
understanding of how borrowers are making choices in this market.
Continue reading "The Behavioral Economics of Title Lending" »
There isn’t a lot of information out there about who uses title loans. The two obvious sources for data on household credit choices leave us empty handed. The Federal Reserve’s Survey of Consumer Finances, began asking about payday loan use in 2007 but not title loans. The FDIC National Survey of Unbanked and Underbanked Households was a big step forward in getting academics access to national data on alternative credit choices, but does not address title loans. Because no national data exist on title borrowers, Kathryn Fritzdixon, Jim Hawkins and I surveyed customers in Texas, Idaho, and Georgia and we report the findings below.
Continue reading "Who Uses Title Loans?" »
new paper on title lending with Katie Fritzdixon and Jim Hawkins, we report data from a survey of over 400 title
lending customers across three states. To introduce this work, we wanted to
start off by talking about the important issues that title lending raises. The
biggest question, by far, is how many title borrowers end up losing their car?
Continue reading " Title Lending’s Big Question: Dude, Where's My Car?" »
Thanks for having me back at Credit Slips! This week I’ll be blogging about two forms of credit that are increasingly popular: auto title lending and pawnshops.
Pawnbroking is back, and in a big way. Recent television shows like Pawn Stars and Hardcore Pawn are a testament to the resurging interest in this ancient form of lending. In a new paper with Susan Payne Carter and Marieke Bos, "The Pawn Industry and Its Customers: The United States and Europe,"we document important facts about the pawn business. Pawnbrokers take collateral or a “pledge,” (anything from jewelry to tools to dental implants!) in exchange for about 50 percent of the item’s resale value, plus interest.
Continue reading "Pawnbroking: The Hot New (Ancient) Credit Market " »