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Payday financing when you look at the UK: the regulation of a necessary evil?

Payday financing when you look at the UK: the regulation of a necessary evil?

KAREN ROWLINGSON

* School of Social Policy, University of Birmingham, Edgbaston, Birmingham, B15 2TT, e-mail: ku.ca.mahb@nosgnilwoR.K

LINDSEY APPLEYARD

** Centre for company in Society, Coventry University, Priory Street, Coventry, CV1 5FB, e-mail: ku.ca.yrtnevoc@3111ca

JODI GARDNER

*** Corpus Christi university, Merton Street, Oxford, OX1 4JF, e-mail: ku.ca.xo.ccc@rendrag.idoj

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 worldpaydayloans.com/ 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 folks 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 additionally makes a significant share to debates in regards to the ‘everyday life’ of financialisation by centering on the ‘lived experience’ of borrowers. We reveal that, contrary to the quite simplistic photo presented by the news and lots of campaigners, different areas of payday financing are now welcomed by clients, because of the circumstances they have been in. Tighter regulation may consequently have negative effects for some. More generally, we argue that the regul(aris)ation of payday financing reinforces the change into the part regarding the state from provider/redistributor to regulator/enabler.

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