The pooled regressions found that minimal loan terms affect loan size, as well as the law-change results support that.
Just one state changed its rules minimum that is regarding optimum loan term: Virginia raised its minimum 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 length in Virginia increased almost 20 times an average of as an effect, suggesting that the alteration was binding. Read More