Regulating Consumer Credit and Protecting (Behavioral) Borrowers

Igor Livshits

Economic Advisor and Economist

Q1 2020

Economic Insights — As we consider how best to protect individual borrowers, Igor Livshits asks: Why and from whom are we protecting these borrowers, and what policies may be most effective?

Public policy debate around consumer credit has focused on consumer protection. But from whom are we protecting these borrowers?

Since the financial crisis of 2007–2008, consumer credit has gotten a lot of attention, especially as it relates to consumer protection. And the attention is not just academic: The Consumer Financial Protection Bureau (CFPB) and the Credit Card Accountability Responsibility and Disclosure (CARD) Act, both instituted after the crisis, have dramatically altered the regulatory landscape of the consumer credit industry.

This article appeared in the First Quarter 2020 edition of Economic Insights. Download and read the full issue.

View the Full Article