CLEMSON, S.C. –( COMPANY WIRE )–Payday loans do not cause bankruptcy, based on a current study by economists at Clemson University.
Dr. Petru S. Stoianovici and Prof. Michael T. Maloney learned the connection between payday bankruptcy and lending filings throughout the duration from 1990 to 2006. Utilizing data that are state-level the legality of payday financing as well as on how many loan shops, the investigators found that neither the legality of payday financing nor a rise in how many loan shops resulted in greater prices of customer bankruptcies.
Relating to Dr. Stoianovici, he and Prof. Maloney learned the consequences of payday-lending legislation and of the variety of payday-loan stores in very early years on a bankruptcy proceeding filing prices in subsequent years. (more…)