Money-lending and financial exclusion

This article focuses on money-lending and financial exclusion in Ireland. Borrowing from money-lenders is seen in the academic literature as an indicator of exclusion from more affordable sources of credit. However, Ireland has a widespread credit union movement which provides access to affordable credit. The authors investigated whether this has an impact on the use of money-lending in Ireland. They found that a significant number of people who borrow from money-lenders also borrow from mainstream sources of credit. The borrower and money-lender relationship is complex and is not centred on access alone. The authors explain why new policy is needed which must not only focus on access to financial services but equally on financial education and regulation.