The Uniform Consumer Credit Code

Some Reflections on Free Entry and the Rate Ceilings Under the Uniform Consumer Credit Code

Consumer Credit and Household Finances

In the 1990s, borrowing by households has grown quickly. In the early part of the decade, the growth was driven by housing lending (Graph␣ 1). More recently, growth in other personal borrowings has picked up sharply. particularly the widespread introduction of loan products enabling households to draw on equity in their owner-occupied property. This type of loan gives explicit recognition, in t...

Dealer Pricing of Consumer Credit

Price discrimination incentives may induce dealers to bear the financial cost of their customers’ credit purchases. We focus in particular on how financial market imperfections make it possible to segment the customer population. When borrowing and lending rates differ from each other and from the rate of interest on a durable good purchase, the structure of those rates influences customers’ ch...

Modelling Consumer Credit and Default : The Research

The last twenty years have seen a rapid growth in the expansion of consumer credit. Figures for the U.K, for example, show that in 1988 consumer credit represented just 50% of national income, compared with 70% in 2001. This paper looks at some of the issues that now need addressing following this expansion in credit, particularly how it may have affected families on low incomes. 1 Experian Cen...

Costly Contracts and Consumer Credit∗

Abstract This paper explores the implications of technological progress in consumer lending. The model features households whose endowment risk is private information, and intermediaries which observe a noisy signal of each borrower’s default risks. To offer a lending contract, an intermediary incurs a fixed cost. Each lending contract is comprised of an interest rate, a borrowing limit and a s...