Rationale for Consumer Credit Regulation

Philemon Iko-Ojo Omede ()
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Philemon Iko-Ojo Omede: Veritas University

Chapter Chapter 2 in Nigerian Consumer Credit, 2022, pp 25-73 from Palgrave Macmillan

Abstract: Abstract Traditional justifications for the regulation of consumer creditConsumer credit derive mostly from the field of economics. However, the economic literature is not unanimous on the welfare implications of consumer borrowing. This chapter considers two schools of thought on the welfare impact of consumer creditConsumer credit and the rationale for its regulation. The first school of thought theorises that credit is welfare-enhancing and enables individuals to balance consumption over a lifetime (life-cycle theoryLife-cycle theory). The second school of thought rejects the idea of consumer creditConsumer credit entirely as a welfare tool, or at least for specific categories of consumers and markets.

Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-3-031-11740-4_2

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DOI: 10.1007/978-3-031-11740-4_2

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