Real finance and social consequences of reducing access to short term loans

Industry News | 31/05/18

Jamie Whyte, Research Director at the Institute of Economic Affairs has appeared on the BBC’s Victoria Derbyshire Show to discuss high cost loans.

In the interview Jamie argues that intervention in the high-cost credit market will reduce the supply. There are good reasons why the interest rates are that high and it’s not that the lenders are actually making huge profits. If you say the interest rates can’t be that high, then these loans won’t be offered – the opportunities to use them will be lost and consumers will be worse off.