Seems as if payday lenders are coming under fire in the UK.
Martin Wheatley, head of the FCA, said: “Today I’m putting payday lenders on notice: tougher regulation is coming and I expect them all to make changes so that consumers get a fair outcome. The clock is ticking.”
Right. Because businesses generally serve their customers by not being fair…
When was the last time any business stayed in business by not providing a good product to customers at a price customers were willing to pay? And the success of the payday loan business is, amongst other things, an indication that payday lenders generally do a good job of giving their customers what they want.
The payday loan industry as a collective isn’t necessarily against this regulation. Say what? Read it:
Russell Hamblin-Boone, chief executive of payday loan industry body the Consumer Finance Association (CFA), said: “The CFA and its members have always supported well-designed, well-implemented regulation in order to protect consumers and drive up standards.”
Confused? Baptist and bootleggers. By advocating for tighter regulation the industry makes it very difficult for new companies – companies that might innovate and come up with even better ways to serve their customers…dare I say it, more fairly – to enter the market. Regulation makes existing businesses more entrenched and less likely to change and innovate. Regulation tends to make industries worse for customers rather than better.