The 2010 financial reform law, known as the Dodd-Frank Act, has
led to a 14.5 percent cut in consumer revolving credit since its
enactment, says the American Action Forum. Based on the
AAF's latest research, consumer credit access is taking a
substantial hit as a result of the $30 billion in regulatory costs
and 72 million hours of paperwork associated with the Dodd-Frank
Act.
The AAF studied Federal Reserve data from 2005 to 2014 to
determine the Act's impact on total revolving credit, which
refers to debt that is paid for periodically and can be borrowed
again (including credit card debt). The researchers found
that the Dodd-Frank Act may have had a significant negative effect
on revolving consumer credit. The researchers' findings
are not particularly surprising, however, in light of criticism
that Dodd-Frank places a high burden on American banks, and
especially smaller banks that may be less equipped to comply with
the increased regulations and
