Consumer credit qualitative research

In order to help understand the consumer experience, both positive and negative, the FCA engaged two research organisations to conduct qualitative research.

Our research papers looked into:

  • payday loans
  • logbook loans
  • debt management services
  • credit cards
  • unauthorised overdrafts
  • low income consumers potentially leading to vulnerable consumers

Our aim

The aim of this research was to create a 'coherent narrative about what the FCA know, understand and believe about the consumer credit market.' Over time this insight will be developed further.

Our objectives

The objectives of the consumer research programme were:

  • assess consumer behaviour and attitudes to the purchasing or consideration of consumer credit products
  • assess how consumers move between credit products and the range of credit products they hold to identify how consumers can become over-indebted
  • identify the key issues that determine the shape and nature of the market in operation and whether consumer behaviours have the potential to lead to detriment
  • understand the customer experience and journey in different consumer credit markets and compare and contrast these

Our findings

Consumer Credit: Payday Loans, Logbook Loans and Debt Management Services - ESRO 2014

Published: 5 June 2014  

This report sets out the consumer experience of payday loans and logbook loans, as well as the experience of debt management services, both fee-charging and non-fee-charging. This research was one strand of several contributing to the Financial Conduct Authority’s Consumer Credit Research Programme. Interviews with sixty respondents who had recent experience of these consumer credit products were conducted in November and December 2013.

Consumer Credit: Deep dives into Credit cards and Unauthorised overdrafts (Jigsaw Research)

Published: 10 April 2014  

This report focuses primarily on the consumer research findings, following qualitative deep dives into credit cards and unauthorised overdrafts. The main report consists of an overview of the research objectives and the methodology, followed by main research findings and conclusions. The findings look to: Assess consumer behaviour and attitudes to the purchasing or consideration of consumer credit products; Assess how consumers move between credit products and the range of different credit products they hold to identify how consumers can become over-indebted; Identify the key issues that determine the shape and nature of the market and whether consumer behaviours have the potential to lead to detriment. The research was conducted by Jigsaw Research Ltd.  

Consumer Credit: Low income, qualitative research (Optimisa Research)

Published: 1 April 2014   

This report details the findings from a qualitative research study amongst indebted consumers living in low income households.  The report examines the role that credit plays in these individuals' lives and identifies where any key themes or differences exist.  The research was designed to: Explore consumer use of different credit products and services; Evaluate the relative perceived value and benefit of different credit products and services; Assess the impact of different credit products on money and debt management; Uncover examples of and potential for detriment in relation to the use of credit; and Understand consumers' experiences in terms of provider communications and actions. The research was conducted by Optimisa Research Ltd.

Further information