Visions and challenges of payday lending in Lithuania

Payday lending market had emerged and rose rapidly in Lithuania as the result of sudden increase of liquidity concerns and restricted access to mainstream credit at the peak of overall economic hardship in 2008-2009. Despite the tremendous popularity, payday loans had earned a bad name mostly because of charges on immoral and irresponsible lending, decorated by the horror stories of loans-gone-wrong. As a response to public charges and regulation initiatives, the industry has tried to justified itself with high transaction costs and benefits of having the lender of last resort available to the consumer in need.