Competition and Adverse Selection in Consumer Credit Markets : Payday Loans vs

@inproceedings{Morgan2008CompetitionAA,
  title={Competition and Adverse Selection in Consumer Credit Markets : Payday Loans vs},
  author={Donald Morgan},
  year={2008}
}
We investigate the relationship between payday lenders, which offer small, short-term consumer loans, and traditional depository institutions using a national survey on the provision and pricing of checking account services. Somewhat surprisingly, we find that payday loan competition leads to higher prices for overdraft credit and bounced check transactions at traditional depositories. In addition, we find that banks and credit unions are less likely to offer free checking accounts when payday… CONTINUE READING