Debt collection agencies and the supply of consumer credit

• 成果类型: Article
• 署名作者: Fedaseyeu, Viktar
• 署名单位: China Europe International Business School
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2020.05.002
• 发表日期: 2020
• 页码: 193-221
• 关键词: Household finance; Consumer credit; Creditor rights; Contract enforcement; Debt collection; law and finance

摘要

This paper finds that stricter laws regulating third-party debt collection reduce the number of third-party debt collectors, lower the recovery rates on delinquent credit card loans, and lead to a modest decrease in the openings of new revolving lines of credit. Further, stricter third-party debt collection laws are associated with fewer consumer lawsuits against third-party debt collectors but not with a reduction in the overall number of consumer complaints. Overall, stricter third-party debt collection laws appear to restrict access to new revolving credit but have an ambiguous effect on the nonpecuniary costs that the debt collection process imposes on borrowers. (C) 2020 Elsevier B.V. All rights reserved.