Payday financing within the UK: the regul(aris)ation of a evil that is necessary?

Payday financing within the UK: the regul(aris)ation of a evil that is necessary?

Abstract

Concern in regards to the increasing usage of payday financing led the united kingdom’s Financial Conduct Authority to introduce landmark reforms in 2014/15. This paper presents a more nuanced picture based on a theoretically-informed analysis of the growth and nature of payday lending combined with original and rigorous qualitative interviews with customers while these reforms have generally been welcomed as a way of curbing ‘extortionate’ and ‘predatory’ lending. We argue that payday lending is continuing to grow as a consequence of three major and inter-related styles: growing earnings insecurity for people in both and away from work; cuts in state welfare provision; and financialisation that is increasing. Present reforms of payday financing do absolutely nothing to tackle these basic causes. Continue reading “Payday financing within the UK: the regul(aris)ation of a evil that is necessary?”