Study: Dodd-Frank Limited Revolving Consumer Credit by Double Digits

The Dodd-Frank Act has resulted in a 14.5 percent reduction in the revolving credit available to consumers in the form of credit cards and other credit renewed as loans are paid off, according to an analysis released today by the American Action Forum. The calculations accounted for economic conditions and international credit trends, the researchers said.

“This figure is massive, at least compared to AAF’s previous work on the intersection of regulation and the economy,” the AAF researchers said. “However, the research on revolving credit, significant at the one percent level, suggests Dodd-Frank’s impact on consumer credit is profound and we are only starting to untangle its effects.”