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Payday Lending Regulations And The Impact On Women Of Color

Author

Listed:
  • Lara Sofia Romero
  • Rafael Romero
  • Sim Jonathan Covington

Abstract

Payday loans, or small short-term loans that carry high fees, may provide a much-needed safety net for some consumers in need of quick cash for emergencies. However, data suggest that most payday loan borrowers become repeat users caught in a cycle of high-cost debt. Furthermore, empirical evidence suggests consistent overrepresentation of women of color, including many single mothers, among payday loan borrowers. Based on international human rights law, the U.S. has an obligation to remedy predatory economic practices such as a payday lending that have a disproportionately negative economic effect on women of color. Posing the issue of payday lending as a human rights issue can make an important contribution to public action on how to address the aftermath of the financial crisis and its impact on women of color

Suggested Citation

  • Lara Sofia Romero & Rafael Romero & Sim Jonathan Covington, 2019. "Payday Lending Regulations And The Impact On Women Of Color," Accounting & Taxation, The Institute for Business and Finance Research, vol. 11(1), pages 83-92.
    • Handle: RePEc:ibf:acttax:v:11:y:2019:i:1:p:83-92
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    References listed on IDEAS

    as
    1. Morse, Adair, 2011. "Payday lenders: Heroes or villains?," Journal of Financial Economics, Elsevier, vol. 102(1), pages 28-44, October.
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    More about this item

    Keywords

    Payday Loans; Women of Color; Human Rights;
    All these keywords.

    JEL classification:

    • K1 - Law and Economics - - Basic Areas of Law
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior

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