Financial service elimination: RESEARCH METHOD

Financial service elimination: RESEARCH METHOD

The very limited empirical work on financial service elimination required the application of the qualitative paradigm that would allow for insights and ideas to be developed. Thus, the data were secured by means of a qualitative semi- structured discussion guide that was administered in face-to face in-depth interviews with the subjects of the research. The population for this study was conceptualised as all UK-incorporated banks, insurance companies and building societies.

A careful investigation of the appropriate sampling frames resulted in a population of 667 financial institutions. A target of 20 in-depth interviews was set and the selection process was based on a stratified purposeful sampling strategy, whereby the cases to be included in the sample illustrate the characteristics of particular sub-groups of interest. In particular, the population was stratified by type of financial institution (Table 3). The intention was that each one of the three types should be proportionately represented in the sample. Also, without imposing any specific proportions, it was deemed important to include in the sample small, medium and large financial institutions using total assets as a size indicator. The selection process of the companies was judgmental, but based on the strata of company type and size. Once a company was selected from the sampling frame, an initial telephone contact was made in order to crosscheck its existence and size and to locate the appropriate person to interview. A formal letter was then sent to the identified person, explaining the research purpose and asking for cooperation. If the response was negative, the declining institution was replaced by another one of the same business type and size group. The above process resulted in the selection of seven banks (two small, two medium, three large), ten insurance firms (three small, three medium, four large) and three building societies (one small, one medium, one large). The 20 in-depth interviews lasted from to 2 hours each and covered a number of topics related to the service elimination process. Nineteen interviews were tape recorded, while extensive notes were taken at the final interview, as the interviewee declined to be recorded.

Table 3 Population stratification

Population strata

Stratum population

Stratum % in the population

Proportionate achieved sample size

Number of companies contacted

Banks

230 (N1)

34.50

7 (n1)

31 (22.6%)*

Insurance companies

367 (N2)

55

10 (n2)

40 (25%)*

Building societies

70 (N3)

10.50

3 (n3)

11 (27.7%)*

Total

667

100

20

82 (24.4 %)*

The interviews were subsequently transcribed and were then subjected to a mechanical analysis in order to sort and classify the data under predefined coding categories and to bring together comments on the same variable. An interpretive analysis was then undertaken in order to explain the comments made by the research subjects and to consider the implications for the research objectives.

Representative APR 391%. Average APR for this type of loans is 391%. Let's say you want to borrow $100 for two week. Lender can charge you $15 for borrowing $100 for two weeks. You will need to return $115 to the lender at the end of 2 weeks. The cost of the $100 loan is a $15 finance charge and an annual percentage rate of 391 percent. If you decide to roll over the loan for another two weeks, lender can charge you another $15. If you roll-over the loan three times, the finance charge would climb to $60 to borrow the $100.

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