The impact of information laws on consumer credit access


Erasing negative information in credit bureaus can benefit some borrowers temporarily, while excluding others from future credit access, particularly if the deletion increases adverse selection. Using a sample of representative households in Chile that combines survey data and banking loan records, I evaluate the impact of three information laws implemented in 2010, 2011 and 2012, with the first law restricting the delinquency information from borrowers receiving unemployment benefits, the second law restricting the variables that can be applied in the credit score, and the third one deleting the available information on loan delinquencies below a certain value. I show that the first and second laws had a positive impact on credit access and reduced borrower delinquency, while the delinquency deletion law harmed loan access and increased delinquencies.

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Información adicional

  • Presentador: Carlos Madeira
  • Proveniente: Banco Central de Chile
  • Fecha: Miércoles, 04 Septiembre 2019
  • Hora: 12 horas
  • Lugar: Sala R3, Edificio Recicla