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When credit use difficulties of the clients are a good business for lenders
WORKING PAPER Pay-day lenders: why can we consider them as being bad players on the credit market?
The study analyses the specificities of pay-day lenders products and industry (especially active in the US and in the UK) and looks deeper in their economic models. It seems that the inappropriate uses of pay-day loans (arrears, repeated uses…) by the clients are precisely the ones that boost their incomes !