Payday futures: sub-prime credit markets in transition?


Barrow Cadbury Trust




Dr Lindsey Appleyard, CBiS

Carl Packman, Toynbee Hall


The project will investigate the impact of the regulation of High-Cost, Short-Term Credit (HCSTC) and how this is reshaping credit markets. The project will use mixed-methods to investigate the impact of the cap on the cost of HCSTC since January 2015 on lenders and borrowers, and the subsequent impact on the broader credit market. The project will map the subprime credit landscape to show how it has changed since the regulatory changes to assess where people now access credit such as through credit unions, unregulated or illegal sources. This is to influence public and policy debates and responsible lending practices.


The key aim is to explore the impact of the regulatory reforms of HCSTC on lender and borrowers and how this is reshaping credit market geographies for consumers, including identifying any newly opened market gaps and behavioural changes. It will provide a substantial evidence base on the impact of reforms, including expected and unexpected outcomes, to the stakeholders (regulators, policymakers, HCSTC lenders, alternative community finance lenders, debt advice charities, mainstream finance, housing associations, and so on) who have championed and implemented the reforms. Throughout the research and beyond the lifetime of the project, we will:

  • Engage with key debates around the regulatory impact of responsible lending and borrowing;
  • Highlight the ‘lived-experience’ of those that still use or are now excluded from accessing HCSTC and how this is reshaping credit markets;  
  • Disseminate the project as broadly as possible using our online networks, and;
  • Use Twitter to encourage discussion using the hashtag #Paydayfutures 
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