Research for the Financial Conduct Authority resulted in an amount cap for payday advances – protecting significantly more than four million cash advance clients from exorbitant interest fees.
- Dr John Gathergood worked because of the Financial Conduct Authority (FCA) to attempt the planet’s study that is largest regarding the behavior of households which use payday solutions, resulting in suggestions for establishing the amount of a loan price limit.
- FCA credit rating policy ended up being shaped by the scholarly research, helping protect 4.3 million folks from irresponsible loan methods in britain. Brand brand brand New FCA regulations arrived into force in January 2015, restricting interest and costs on pay day loans to 0.8percent a day and launching brand brand new requirements for affordable credit.
- One year following the introduction associated with policy the amount of payday loan providers dropped from 400 to below 150. The staying firms withdrew through the market.
- The number of loan-related problems handled by Citizens Advice dropped by 50% within three months of the regulations coming into force.
” In my view John Gathergood is, without peer, the united kingdom’s leading specialist regarding the economics of credit rating areas. He could be an essential partner for the FCA now as well as in the near future. John has demonstrated which he provides, when it comes to engaging and useful research production and top-notch interaction regarding the findings, payday loans Kansas when you look at the context of a practical policy organization. ” (Dr Stefan search, Head of Behavioural Economics and Data Science, Financial Conduct Authority)