Abstract

Do deals with debt collectors alleviate consumer financial distress? Using new data linking court and credit registry records, we examine civil collection lawsuits where consumers can settle out of court. Random assignment of judges with different styles generates exogenous variation in the likelihood of settlement negotiations. We find that settlements increase financial distress relative to going to court, likely by draining consumers of liquidity. The effect is stronger among less financially literate consumers. Survey evidence suggests that consumers generally overestimate how much they would pay through the court system. Perceived nonpecuniary benefits also motivate some consumers to settle.

中文翻译：

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消费者与收债员打交道时的票价如何？庭外和解的证据

摘要

与收债员打交道是否减轻了消费者的财务困扰？使用链接法院和信用登记记录的新数据，我们研究了消费者可以在庭外和解的民事催收诉讼。不同风格的法官的随机分配在和解谈判的可能性上产生了外在的变化。我们发现和解协议相对于上法庭增加了财务困扰，这可能是因为消耗了流动资金的消费者。对金融知识程度较低的消费者的影响更大。调查证据表明，消费者通常会高估他们将通过法院系统支付的金额。感知到的非金钱利益也促使一些消费者安定下来。