The pooled regressions found that minimal loan terms affect loan size, and also the results that are law-change that.

Only 1 state changed its regulations minimum that is regarding optimum loan term: Virginia raised its minimal loan term from seven days to 2 times the length of the debtor’s pay period. Presuming a standard pay period of fourteen days, this raises the effective restriction by about 21 days. The column that is third of 5 estimates that loan size in Virginia increased almost 20 times an average of as an outcome, suggesting that the change had been binding. OH and WA both display more changes that are modest typical loan term, though neither directly changed their loan term laws and Ohio’s modification had not been statistically significant.

All six states saw changes that are statistically significant their prices of loan delinquency. Continue reading