There is something endearingly audacious about Justin Welby’s expressed desire to compete the titans of Britain’s payday loan industry out of existence. But the Archbishop of Canterbury’s remarks raise two connected questions. Can he do it, and should he want to?
The first point is easier to deal with….
There are better ways for the archbishop to help the poor than for the church to dish Wonga. Those on the margins of society will always need occasional access to loans to help tide them over unscheduled expenses or interruptions in income. That these should be appropriately priced goes without saying.
The real challenge, however, is not simply to shave the interest rate by a few points, but to ensure that those who take out loans do so in the full knowledge of the risks and with a realistic plan for managing them. This means two things: first, offering genuine advice to potential borrowers; and second, real assistance should things go wrong….
Read it all (or if necessary another link is there).
(FT) Jonathan Ford–Moral objections to the case for dishing Wonga
There is something endearingly audacious about Justin Welby’s expressed desire to compete the titans of Britain’s payday loan industry out of existence. But the Archbishop of Canterbury’s remarks raise two connected questions. Can he do it, and should he want to?
The first point is easier to deal with….
There are better ways for the archbishop to help the poor than for the church to dish Wonga. Those on the margins of society will always need occasional access to loans to help tide them over unscheduled expenses or interruptions in income. That these should be appropriately priced goes without saying.
The real challenge, however, is not simply to shave the interest rate by a few points, but to ensure that those who take out loans do so in the full knowledge of the risks and with a realistic plan for managing them. This means two things: first, offering genuine advice to potential borrowers; and second, real assistance should things go wrong….
Read it all (or if necessary another link is there).