Regulating high-cost short-term credit in the UK: is there scope for ‘libertarian paternalism’ based provisions?

Abstract The regulatory protection of credit consumers, in general, is paramount due to the considerable use credit, imbalanced bargaining positions contracting parties and adverse effect over-indebtedness on individuals society alike. These concerning factors are worsened case High-Cost Short-Term Credit (HCSTC) consumers owing their disadvantaged financial position other recognised vulnerabilities. In this respect, paper argues that direct intervention, despite its importance, not always a silver bullet. Through analysis overhauling UK HCSTC framework, demonstrates shortfalls these changes. Accordingly, shifts argument towards improving decision-making mechanisms ie role ‘libertarian paternalism’-based interventions. By using bespoke experimental survey, type behavioural interventions can assist endeavour which regulator could possibly mandate.