Determinanty rozwoju rynku firm pożyczkowych w Polsce
Determinants of payday loan market’s development in Poland

Summary/Abstract: Access to basic financial services is one of the factors that determine people’s participation in social and economic life. Citizens excluded from the banking sector are looking to alternative sources to satisfy their financial needs. Money is supplied by payday loan providers which offer usurious short term loans at prices many times higher than bank prices. The aim of the article is to deal with the following research question: Is the payday lending market winning the short-term loans competition with the banking sector and if yes, why is it so despite the incomparably higher total costs of payday loans? The following research hypothesis was verified in the study: the low level of financial awareness and the lack of supervision over payday loan companies in Poland contributes to usurious exploitation of the people excluded by banks, which results in a debt spiral for a considerable segment of the customers.

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