In Debt Collection Agencies and the Supply of Consumer Credit, Viktar Fedaseyeu examines state-level data to assess the effect of state laws limiting third-party debt collectors on the availability of revolving lines of credit (i.e., credit cards). The debt-buying industry claims that this paper demonstrates that consumers are harmed by these laws and thus regulations should be rolled back, or otherwise curtailed. However, the model used in this analysis does not support the conclusion that consumers are harmed. Our review below details the limitations of the approach this study employs for drawing conclusions about the impact of debt collection laws on the ability of consumers to obtain credit.
