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

Abstract

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. 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 financing has exploded as a consequence of three major and inter-related trends: growing earnings insecurity for folks in both and out of work; cuts in state welfare supply; and increasing financialisation. Continue reading