Another „Research“ from the UK to defend its usurious Credit Practices – Stop it.
Since a couple of years we observe so-called research in the UK, the EU Member State with the highest usurious credit rates in Europe, the most problematic banking community. The studies are designed to show that UK usury serves the poor. While the simple ideology that less regulation lets market play in favour of the poor people and against social discrimination has lost its convincing power against evidence that the highest social discrimination in banking exists in just this state now increasingly the Office of Fair Trading and the Department of Trade and Industry publish so-called “research” which tries to show that the rest of the world is wrong and the UK is right.
In so far they recently published statements on Germany claiming that for example Germans circumvent the interest rate caps by using foreign credit at usurious rates. Some time ago they already argued that there is a credit crunch in Germany for the poor because they could find only little high cost credit card credit in this country.
While the latter was due to their ignorance about the role of bank accounts and overdraft credit in serving lower income strata in Germany the first statement now ignores the extensive research iff did for DG SANCO on the non-existence of transborder commerce in consumer credit.
We are tired of commenting ill-founded research which ignores all strandards of social research as well as available international data mandating own researchers which seem to stay at home and deliver the required arguments for English policy makers. The OFT should refrain from citing other countries it does not understand nor know about and stick to its own system. The fine UK research of the 1980ties should be rediscoverd instead of burdening foreign researchers with the task to rectifying ever new and absurd findings on consumer credit.
Many comments and material have been deliverd to UK media, OFT, DTI and activists. The impression is that the outcome has always been the same: no regulation but consumer information. None of our unpaid work had the slightest effect onto a very simplistic official ideology according to which the poor themselves want usurious credit practices from Providential or doorstep sellers or equity release schemes. Neither empirically nor theoretically such findings have any valid foundations. A recent paper from the New Economics Foundation (see attachement) goes through some of these open errors and irresponsilbe uses of data and research which concern especially the outdated and ill-founded Policis studies.
Excuse the emotional reaction but there is a limit where discussions are only keeping people active for nothing. ECRC wants to help the poor and not governments and banks to refine their arguments for defendomg its discriminatory policies in credit and debt.
08 December 2009
The OFT has published the emerging evidence from its review of high-cost credit. This is in line with the review's commitment to publish an interim report before the end of 2009.
The evidence published includes the results of a consumer survey, initial results from behavioural economics research, a review of international policy approaches to high-cost credit, and evidence on the impact of the recession on competition in the market. Attached is the summary of the emerging evidence to date. Further details, which includes the interim research report and four annexes, which are available to download, can be found at the following address: