Hawkins & Pennebaker--Marketing Race and Credit in America

09/25/21

Past Credit Slips guest blogger, Jim Hawkins from the University of Houston, and his student, Tiffany Penner, alerted me to their recent publication in the Emory Law Journal entitled, "Advertising Injustices: Marketing Race and Credit in America." The paper takes an interesting approach to the issue of how consumer credit gets marketed in the United States. They visited fringe lending establishments as well as the web sites of these establishments and mainstream banks and looked at the persons used as models in their advertisements.

Although I have some questions about the magnitude of the effects--questions that come from how different government agencies Latino or Hispanic heritage sometimes as an ethnicity and sometimes as a racial identity--the core finding of the paper seems right. The models used in the advertisements send a signal about whether the financial service is "for people like you." How those people differ between mainstream banks and fringe lenders will not surprise anyone who has paid even a bit of attention to the structural racism that defines our economy. Hawkins and Penner close the paper with some thoughts on how the Equal Credit Opportunity Act and the Community Reinvestment Act might help fix the problems they identify.

[more]