Payday loan lenders: The issue of Business Morality
Payday lenders operate legally in the United Kingdom. However, Justin Welby, the Archbishop of the Anglican church, last week made a statement that did not accuse these lenders of operating illegally but accused them of acting immorally. He criticised the payday lenders for preying on the most vulnerable people in society through high interest rates on cash loans. He vowed that his church was going to set up credit unions to compete with payday lenders and drive them out of business. This statement raises the issue about the extent of morality in business. Payday lenders such as Wonga and Quick Quid are accused of not applying the principles of morality when offering cash loans to borrowers but only tend to consider their own financial gains from such transactions. The principles of morality are associated with the distinction between good and bad or right and wrong. However, this criticism may not be justified on the ground that the primary objective of running a business is ...