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Monday, June 29, 2015

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Program in Consumer Credit & Payments

About the Program in Consumer Credit and PaymentsAbout the Program in Consumer Credit & Payments

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.


What's new

Call for Papers: New Perspectives on Consumer Behavior in Credit and Payments Markets

A conference cosponsored by the Research Department and Payment Cards Center
of the Federal Reserve Bank of Philadelphia

October 1-2, 2015
Submission deadline: June 30, 2015

This conference seeks to capture the latest research on household finance and consumer payments. We encourage researchers to submit theoretical and empirical studies that reflect the entire range of approaches and methodologies. We also encourage submissions that address the design and efficacy of regulations for consumer credit markets. Follow the link above for full submission details.

April 2015

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.

February 2015

Discussion Paper Released: A Tale of Two Vintages: Credit Limit Management Before and After the CARD Act and Great Recession

This paper uses tradeline-level credit card data to examine initial credit limits and early credit limit increases before and after the Great Recession and implementation of the CARD Act. I compare two vintages of credit card accounts: those opened in 2005 and 2011, and follow each vintage for more than two years after account opening. In general, I find that significantly less credit was extended to approved credit card applicants in 2011 than in 2005. Accounts in the 2011 vintage started out with lower initial credit limits, received fewer limit increases, and received a smaller increase amount in dollar terms. These changes were most pronounced among the riskiest 25 percent of accounts opened in 2011. For this segment of the market, the median initial credit limit fell 66.7 percent to $500, and the median limit increase amount fell by at least 25 percent at each observation point. At the same time, limit increases occurred more often and sooner for this group, perhaps in recognition of the very low starting limits.

Payment Cards Center Updates Consumer Credit & Payments Statistics

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.

  • Last update: April 6, 2015

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