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

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

Abstract

Concern concerning 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 because of three major and inter-related styles: growing earnings insecurity for people in both and away from work; cuts in state welfare supply; and increasing financialisation. Current reforms of payday financing do absolutely nothing to tackle these causes. Our research also makes a contribution that is major debates concerning the ‘everyday life’ of financialisation by centering on the ‘lived experience’ of borrowers. We reveal that, contrary to the quite picture that is simplistic by the media and several campaigners, different facets of payday financing are in reality welcomed by clients, offered the circumstances these are generally in. Tighter regulation may consequently have consequences that are negative some. Continua la lectura de Payday financing into the UK: the regul(aris)ation of the evil that is necessary?