Payday lending within the UK: the regul(aris)ation of a necessary evil?

Payday lending within the UK: the regul(aris)ation of a necessary evil?

Concern in regards to the use that is increasing of financing led the united kingdom’s Financial Conduct Authority to introduce landmark reforms in 2014/15. While these reforms have actually generally speaking been welcomed as a means of curbing ‘extortionate’ and ‘predatory’ lending, this paper presents an even more nuanced image centered on a theoretically-informed analysis of this development and nature of payday financing coupled with initial and rigorous qualitative interviews with clients. We argue that payday financing has exploded because of three major and inter-related trends: growing earnings insecurity for folks both in and away from work; cuts in state welfare supply; and increasing financialisation. Current reforms of payday lending do absolutely nothing to tackle these basic causes. Our research additionally makes a contribution that is major debates concerning the ‘everyday life’ of financialisation by concentrating on the ‘lived experience’ of borrowers. We reveal that, contrary to the quite picture that is simplistic because of the media and several campaigners, different facets of payday financing are in fact welcomed by clients, because of the circumstances they truly are in.

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