The program in Consumer Credit & Payments is a Bank-wide effort to advance our understanding of these markets and to make this information available to industry, consumers, policymakers, researchers, and the public at large. On these pages you will find research and analysis produced by the Bank's subject matter experts in Community Development Studies and Education, the Payment Cards Center, Research, Supervision and Regulation, and other areas.
This paper follows up on the author’s 2010 report of findings from the same source with more recent, postrecession consumer reported activity. The updated findings were presented by Michael Marx, senior director, Visa Research Insights, during a workshop hosted by the PCC in May 2014.
Bankruptcy reform in 2005 eliminated debtors' ability to discharge private student loan debt in bankruptcy. Using a unique, nationally representative sample of anonymized credit bureau files, the authors examine the bankruptcy filing and delinquency rates of private student loan borrowers in response to the 2005 bankruptcy reform.
In this paper, the author examines how the Great Recession and implementation of the CARD Act affected credit card issuers' credit limit management strategies by analyzing tradeline-level credit card data on initial credit limits and early credit limit increases.
The statistics are divided into a Consumer Credit Snapshot and a Consumer Payments Snapshot. They are derived from various sources including the Federal Reserve Payments Study (various years), the Federal Reserve Consumer Credit — G.19, and Federal Reserve Financial Accounts of the United States — Z.1.
Discussion Paper Released: Trends and Preferences in Consumer Payments: Updates from the Visa Payment Panel Study
Michael Marx, senior director, Visa Research Insights, conducted a workshop in 2009 at the Payment Cards Center (PCC) as the economy was emerging from a recession. At that time, it appeared that the recession had affected consumer payment preferences, especially those related to cash and credit cards. To get an update on consumers’ use of the various payment methods, the PCC invited Marx to facilitate another workshop in 2014. More recent findings from the Visa Payment Panel Study reveal declines in cash use — a return to the long-term trend — and increases in credit card use, perhaps signaling some return of confidence among consumers. Check use continued its unbroken long-term decline, and debit card growth has slowed. Private label cards have also registered a steady decline in their share of spending volume for a number of years. Their revolving credit utility, however, remains consequential in financing consumer purchases.
Working Paper Released: Do Student Loan Borrowers Opportunistically Default? Evidence from Bankruptcy Reform
Bankruptcy reform in 2005 eliminated debtors' ability to discharge private student loan debt in bankruptcy. This law aimed to reduce costly defaults by diminishing the perceived incentive of some private student loan borrowers to declare bankruptcy even if they had sufficient income to service their debt. Using a unique, nationally representative sample of anonymized credit bureau files, the authors examine the bankruptcy filing and delinquency rates of private student loan borrowers in response to the 2005 bankruptcy reform. They do not find evidence that the nondischargeability provision reduced the likelihood of filing bankruptcy among private student loan borrowers as compared with other debtors whose incentives were not directly affected by the policy.