Episode 7: Behind Economics and Finance: Prisoners’ Dilemmas and Payday Lenders [Audio]
LSE Review of Books
00:00
The Troubling Landscape of Payday Lending
This chapter explores the rise of payday lending shops, particularly in economically distressed areas, revealing their impact on local communities. It contrasts payday lending with traditional banking, highlighting high interest rates, lack of regulation, and the cycle of debt that ensnares desperate borrowers. Through personal stories and a comparison between the UK and US, the chapter emphasizes the need for better financial alternatives and deeper policy research to combat the issues posed by the payday lending industry.
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