An economic adviser to financial regulators on payday loans had his favourable report on the potential “social good” of high cost credit funded by the payday loan industry, Political Scrapbook has confirmed.
Having been dragged into an interest rate cap, the government left it to the Financial Conduct Authority to deal with the detail. Academic John Gathergood was commissioned to advise them and is still in post:
“The FCA are forming proposals to limit the cost to consumers in the form of an ‘interest rate cap’ to be announced in April 2014 and implemented from January 2015. John will advise the FCA on how to statistically model the impact of the cap and the likely effects on consumers and firms in the sector.
Disturbing then, to see Gathergood pop up at Tory think tank Respublica as the co-author of a report funded by the industry body for legal loansharks — including Cash Converters, the Money Shop and QuickQuid.