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

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

Concern concerning the increasing usage of payday financing led great britain’s Financial Conduct Authority to introduce landmark reforms in 2014/15. While these reforms have generally speaking been welcomed as an easy way of curbing ‘extortionate’ and ‘predatory’ lending, this paper presents an even more nuanced image centered on a theoretically-informed analysis for the development and nature of payday financing coupled with initial and rigorous qualitative interviews with customers. We argue that payday financing is continuing to grow due to three major and inter-related styles: growing earnings insecurity for folks both in 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 causes. Our research additionally makes an important contribution to debates in regards to the ‘everyday life’ of financialisation by concentrating on the ‘lived experience’ of borrowers. Read More