The Open UniversitySkip to content
 

The Impact On Business And Consumers Of A Cap On The Total Cost Of Credit

Personal Finance Research Centre (2013). The Impact On Business And Consumers Of A Cap On The Total Cost Of Credit. Department for Business Innovation and Skills, London.

URL: http://www.bris.ac.uk/geography/research/pfrc/them...
Google Scholar: Look up in Google Scholar

Abstract

This research was commissioned to inform understanding of the likely impact on lenders and consumers of introducing a variable cap on the total cost of credit that can be charged in the short-to-medium term fixed-rate credit markets. The purpose of the research was not to make a recommendation to BIS on whether or not a cap should be introduced, but to provide an up-to-date evidence base that would help inform policy decision-making in this area.

The research covered home credit, pawnbroking, retail payday lending (carried out in-store) and online payday lending. It is the largest social research study of customers of high-cost credit carried out in the UK.

Six main issues associated with short-term credit were indicated by this research. Two relate to the cost of credit: the total charge for credit and default charges. The other four relate to affordability assessment; financial difficulty; multiple and repeat borrowing from short-term lenders; and loan renewals.

Item Type: Other
Copyright Holders: 2013 Department for Business Innovation and Skills
Project Funding Details:
Funded Project NameProject IDFunding Body
Not SetNot SetDepartment for Business, Innovation and Skills
Academic Unit/School: Faculty of Business and Law (FBL) > Business > Department for Accounting and Finance
Faculty of Business and Law (FBL) > Business
Faculty of Business and Law (FBL)
Item ID: 40170
Depositing User: Sharon Collard
Date Deposited: 11 Jun 2014 12:48
Last Modified: 01 Jan 2019 07:01
URI: http://oro.open.ac.uk/id/eprint/40170
Share this page:

Actions (login may be required)

Policies | Disclaimer

© The Open University   contact the OU