The Future of High-Cost Credit: Rethinking Payday Lending (Hart Studies in Commercial and Financial Law)

This book proposes a new way of thinking about the controversial and complex challenge of regulating high-cost credit, with a specific focus on payday lending. These products have received significant attention in both the media and the political arena, but remain underexplored from an academic perspective. The inadequacy of regulatory interventions has created ongoing problems in the market, particularly when credit is provided to individuals who are already financially vulnerable. Two specific gaps in the existing literature are tackled in the book. First, the inadequate analysis of the relevant philosophical concepts around high-cost credit, which can result in an oversimplification of particularly complex legal and social issues. Secondly, the lack of engagement in both the high-cost credit market and lived experience of borrowers, resulting in limited understanding of those who use these financial products. The Future of High-Cost Credit explores the theoretical grounding, policy initiatives and interdisciplinary perspectives associated with high-cost credit, making a novel and insightful contribution to the existing literature. The problems with debt extend far beyond the legal sphere, and the book will therefore be of interest to many other academic disciplines, as well as for those working in public policy and ‘the third sector’. Hart Studies in Commercial and Financial Law: Volume 7 Foreword Acknowledgements Contents Table of Cases Table of Adjudications Table of Legislation and Secondary Legislation 1. Introduction 1.1. Payday Problems 1.2. Why High-Cost Credit? 1.3. Method, Scope and Jurisdiction 1.4. Outline PART I: PHILOSOPHICAL CONTEXT: THE CONCEPTS OF HIGH-COST CREDIT 2. High-Cost Credit in the UK 2.1. How is High-Cost Credit Regulated? 2.2. What are the Challenges to Regulation? 2.3. Conclusion 3. Freedom 3.1. What is Freedom? 3.2. The History of Freedom 3.3. Justifying Freedom 3.4. Examples of Freedom 3.5. Limitations of Freedom 3.6. Conclusion 4. Regulation 4.1. What is Regulation? 4.2. The History of Regulation 4.3. Explanations for Regulation 4.4. Examples of Regulation 4.5. Limitations of Regulation 4.6. Conclusion 5. A Social Minimum 5.1. What is a Social Minimum? 5.2. The History of A Social Minimum 5.3. Explanations for a Social Minimum 5.4. Examples of a Social Minimum Provision 5.5. Limitations of a Social Minimum 5.6. Conclusion PART II: THE SOCIAL CONTEXT: IDENTIFYING HIGH-COST CREDIT BORROWERS 6. The Lived Experience 6.1. Research Method and Results 6.2. Financially Secure Borrowers 6.3. Financially Insecure Borrowers 6.4. Significantly Impaired Borrowers 6.5. Conclusion 7. Future Directions 7.1. Law Reform Recommendations 7.2. Social Welfare Responses 7.3. Further Research 8. Conclusion Appendix 1: Stakeholder Interview Responses Appendix 2: Borrower Interview Responses Bibliography Index "This book proposes a new way of thinking about the controversial and complex challenges associated with the regulation of high-cost credit, specifically payday lending. These products have received significant attention in both the media and political arena. The inadequacy of regulatory interventions has created ongoing problems with the provision of high-cost credit, particularly for consumers with lesser bargaining power and who are already financially vulnerable. The book tackles two specific gaps in the existing literature. The first involves inadequate analysis of the relevant philosophical concepts around high-cost credit, which can result in an over-simplification of what are particularly complex issues. The second is a lack of engagement in both the market and lived experience of borrowers, resulting in limited understanding of those who use these financial products. The Future of High-Cost Credit explores the theoretical grounding, policy initiatives and interdisciplinary perspectives associated with high-cost credit, making a novel and insightful contribution to the existing literature. The problems with debt extend far beyond the legal sphere, and the book will therefore be of interest to many other academic disciplines, as well as for those working in public policy and 'the third sector'."-- Provided by publisher