Vulnerable consumer experiences of (dis)empowerment with consumer protection regulations

Abstract

The payday lending industry has been characterized as predatory, which has led to tougher government interventions. However, research on how stricter consumer protection regulations affect actual vulnerable consumers' lived experiences remains seriously underdeveloped. Following in-depth interviews with financially excluded and therefore vulnerable payday loan consumers, this study finds that increased payday loan industry regulations are perceived by consumers as either empowering, disempowering, or simultaneously (dis)empowering. Accordingly, practical implications are developed to help public policy makers navigate vulnerable consumers' ambivalent relationship with consumer protection regulations.