Abstract
With the matter of high-cost credit, particularly in the form of its most notorious and well-known variant payday lending, consumers have presented to them one of two conflicting assessments: on the one hand we have the numerous studies that have been critical of the industry in recent years, or we can believe the industry itself. I’ve been fortunate to bear witness to both. In 1999 UK “extortionate credit,” of which payday lending was considered a growing yet significant part, had the following factors associated with it: high cost; dubious sales practices; lacking in transparency; odious means of debt recovery.1 The industry on the other hand suggested otherwise. The Community Financial Services Association of America (CFSA), an association representing over half of the payday loan stores in the United States, has claimed that “payday advance customers represent the heart of America’s middle class.”2
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Notes
Kempson, E. and Whlyey, C. (1999), Extortionate Credit in the UK, London: Department of Trade and Industry.
Quoted in Bocian, Davis, Garrison, Sermons (2012), The State of Lending in America & Its Impact on U.S. Households, US: Center for Responsible Lending.
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© 2014 Carl Packman
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Packman, C. (2014). Introduction. In: Payday Lending: Global Growth of the High-Cost Credit Market. Palgrave Pivot, New York. https://doi.org/10.1057/9781137361103_1
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DOI: https://doi.org/10.1057/9781137361103_1
Publisher Name: Palgrave Pivot, New York
Print ISBN: 978-1-349-47631-2
Online ISBN: 978-1-137-36110-3
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