Responsible Borrowing and Lending

J. Gardner, K. Rowlingson, Lindsey Appleyard

Research output: Contribution to journalArticle

Abstract

The UK has generally had a relatively ‘light touch’ regulatory framework for consumer credit, with the onus on the individual to behave responsibly when taking out unsecured loans. Concerns have however recently grown regarding the provision of short-term, high-cost credit,4 with the actions of the lending institutions frequently labelled as irresponsible, exploitative and predatory. As a result, the legal and social obligations on lenders have been subject to significant analysis and reform. While the responsibility of lenders is an important issue for discussion, this paper focuses on the responsibilities of borrowers looking at the issues from a legal and social policy perspectives. It begins with a discussion of individual responsibility and what might constitute ‘responsible borrowing’ before applying this concept to the use of high cost credit. The paper draws on a range of literature on the topic from both a legal and social policy perspective, as well as analysing interviews with forty-four borrowers to examine the nature of responsible borrowing from a consumer perspective.
LanguageEnglish
Pages14-28
Number of pages15
JournalInternational Journal on Consumer Law and Practice
Volume6
Publication statusPublished - Sep 2018

Fingerprint

lending
legal policy
credit
responsibility
costs
loan
obligation
reform
interview
Social Policy

Keywords

  • Financialization
  • Payday Lending
  • High Cost Credit

Cite this

Responsible Borrowing and Lending. / Gardner, J.; Rowlingson, K.; Appleyard, Lindsey.

In: International Journal on Consumer Law and Practice , Vol. 6, 09.2018, p. 14-28.

Research output: Contribution to journalArticle

@article{0840aa7f55c9468bb558ebeb1ac33a1e,
title = "Responsible Borrowing and Lending",
abstract = "The UK has generally had a relatively ‘light touch’ regulatory framework for consumer credit, with the onus on the individual to behave responsibly when taking out unsecured loans. Concerns have however recently grown regarding the provision of short-term, high-cost credit,4 with the actions of the lending institutions frequently labelled as irresponsible, exploitative and predatory. As a result, the legal and social obligations on lenders have been subject to significant analysis and reform. While the responsibility of lenders is an important issue for discussion, this paper focuses on the responsibilities of borrowers looking at the issues from a legal and social policy perspectives. It begins with a discussion of individual responsibility and what might constitute ‘responsible borrowing’ before applying this concept to the use of high cost credit. The paper draws on a range of literature on the topic from both a legal and social policy perspective, as well as analysing interviews with forty-four borrowers to examine the nature of responsible borrowing from a consumer perspective.",
keywords = "Financialization, Payday Lending, High Cost Credit",
author = "J. Gardner and K. Rowlingson and Lindsey Appleyard",
year = "2018",
month = "9",
language = "English",
volume = "6",
pages = "14--28",
journal = "International Journal on Consumer Law and Practice",

}

TY - JOUR

T1 - Responsible Borrowing and Lending

AU - Gardner, J.

AU - Rowlingson, K.

AU - Appleyard, Lindsey

PY - 2018/9

Y1 - 2018/9

N2 - The UK has generally had a relatively ‘light touch’ regulatory framework for consumer credit, with the onus on the individual to behave responsibly when taking out unsecured loans. Concerns have however recently grown regarding the provision of short-term, high-cost credit,4 with the actions of the lending institutions frequently labelled as irresponsible, exploitative and predatory. As a result, the legal and social obligations on lenders have been subject to significant analysis and reform. While the responsibility of lenders is an important issue for discussion, this paper focuses on the responsibilities of borrowers looking at the issues from a legal and social policy perspectives. It begins with a discussion of individual responsibility and what might constitute ‘responsible borrowing’ before applying this concept to the use of high cost credit. The paper draws on a range of literature on the topic from both a legal and social policy perspective, as well as analysing interviews with forty-four borrowers to examine the nature of responsible borrowing from a consumer perspective.

AB - The UK has generally had a relatively ‘light touch’ regulatory framework for consumer credit, with the onus on the individual to behave responsibly when taking out unsecured loans. Concerns have however recently grown regarding the provision of short-term, high-cost credit,4 with the actions of the lending institutions frequently labelled as irresponsible, exploitative and predatory. As a result, the legal and social obligations on lenders have been subject to significant analysis and reform. While the responsibility of lenders is an important issue for discussion, this paper focuses on the responsibilities of borrowers looking at the issues from a legal and social policy perspectives. It begins with a discussion of individual responsibility and what might constitute ‘responsible borrowing’ before applying this concept to the use of high cost credit. The paper draws on a range of literature on the topic from both a legal and social policy perspective, as well as analysing interviews with forty-four borrowers to examine the nature of responsible borrowing from a consumer perspective.

KW - Financialization

KW - Payday Lending

KW - High Cost Credit

M3 - Article

VL - 6

SP - 14

EP - 28

JO - International Journal on Consumer Law and Practice

T2 - International Journal on Consumer Law and Practice

JF - International Journal on Consumer Law and Practice

ER -