Proponents of stricter regulations and control of payday lending business may not be aware of the fact that they are probably doing a great disservice to UK consumers. Despite their firm belief that they are protecting the welfare of consumers, the full implication of a tighter regime in the operations of this subprime lending service may actually do more harm than good to consumers.

With the current credit crunch, where can consumers run to in the event that they don’t qualify for regular loans? If you take payday loans out of the equation, what would be the next option of these hapless consumers? Sadly, even the proponents of this move to further regulate and control payday lending business could not offer a viable alternative. The truth of the matter is that the issue of control and regulation seems to be creating more problems than solving them. In fact, there are certain proposals that can render the business of payday lending unprofitable in the event that these are fully implemented.

The gut issue is not really on how the affairs of payday lending companies are being handled. Our focus should be in the proper education of consumers on sound financial management and the campaign for a more responsible spending.