Just one state changed its laws and regulations minimum that is regarding optimum loan term: Virginia raised its minimal loan term from seven days to 2 times the size of the debtor’s pay period. Assuming a pay that is standard of fourteen days, this raises the effective restriction Virginia installment loans by about 21 days. The 3rd line of dining table 5 quotes that loan length 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 changes that are modest normal loan term, though neither directly changed their loan term laws and Ohio’s modification had not been statistically significant.
All six states saw statistically significant alterations in their prices of loan delinquency.
The change that is largest took place in Virginia, where delinquency rose nearly 7 portion points over a base rate 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.