Just one state changed its rules regarding minimum or optimum loan term: Virginia raised its minimal loan term from 1 week to 2 times the length of the debtor’s pay period. Presuming a pay that is standard of fourteen days, 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 modest alterations in normal loan term, though neither directly changed their loan term laws and Ohio’s modification wasn’t statistically significant.
All six states saw statistically significant alterations in their prices of loan delinquency.
The biggest modification took place Virginia, where delinquency rose nearly 7 portion points over 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. Cost caps and delinquency alike dropped in Ohio and Rhode Island, while cost caps and delinquency rose in Tennessee and Virginia.