Payday Lending Regulation and Borrower Vulnerability in the United Kingdom and Australia

Journal of Business Law, 2015, Issue No. 3, pp. 223-255

35 Pages Posted: 23 Apr 2015

See all articles by Paul Ali

Paul Ali

University of Melbourne - Law School

Cosima Hay McRae

University of Melbourne - Law School

Ian Ramsay

Melbourne Law School - University of Melbourne

Date Written: April 21, 2015

Abstract

The current debate in the United Kingdom about the appropriate regulatory response to payday lending involves the key issue of borrower vulnerability. There is compelling evidence in the UK that many payday lenders are deliberately making loans to financially vulnerable borrowers who cannot afford those loans. This article examines the evidence for borrower vulnerability in the UK and Australia and the regulatory responses in those two countries to payday lending. Payday loans in Australia are the same as those that are available in the UK and the concerns that are now being raised in the UK about payday lending formed the basis for recent regulatory intervention in Australia. This article also contains an empirical study of the location of payday lending businesses in Australia. We investigate whether payday lenders are more likely to locate their business operations in areas where larger groups of financially vulnerable people are living.

Suggested Citation

Ali, Paul and McRae, Cosima Hay and Ramsay, Ian, Payday Lending Regulation and Borrower Vulnerability in the United Kingdom and Australia (April 21, 2015). Journal of Business Law, 2015, Issue No. 3, pp. 223-255 . Available at SSRN: https://ssrn.com/abstract=2597393

Paul Ali

University of Melbourne - Law School ( email )

University Square
185 Pelham Street, Carlton
Victoria, Victoria 3010
Australia
+61 3 8344 1088 (Phone)
+61 3 8344 5285 (Fax)

HOME PAGE: http://www.law.unimelb.edu.au

Cosima Hay McRae

University of Melbourne - Law School ( email )

185 Pelham Street
Carlton, Victoria 3053
Australia

HOME PAGE: http://www.unimelb.edu.au

Ian Ramsay (Contact Author)

Melbourne Law School - University of Melbourne ( email )

University Square
185 Pelham Street, Carlton
Victoria, Victoria 3010
Australia
+61 3 8344 5332 (Phone)

HOME PAGE: http://law.unimelb.edu.au/about/staff/ian-ramsay

Register to save articles to
your library

Register

Paper statistics

Downloads
532
Abstract Views
1,529
rank
51,565
PlumX Metrics