Payday Loan charges to be reduced by FCA action

Nov 11, 2014 Payday Loan charges to be reduced by FCA action Today the FCA who regulate the payday loans industry, amongst other things, announced its final decision on the cap on interest rates and charges that lenders can make. These new limits will come into effect from January 2015. So, what exactly has the the FCA announced? In effect it confirms what they proposed in July 2014. This includes: A maximum interest rate of 0.8% per day No more than £15 for a charge if a borrower defaults on their debt A person cannot be charged more than double the amount they borrowed These limits will also apply to other short term credit lenders who are not explicitly payday loan lenders.     Where does this leave borrowers? Interestingly the 0.8% per day interest rate limit means that if you borrow £100 for 30 days you would not pay more than £24 in interest. A rate of £24 per £100 borrowed is back to the rates charged when payday loans first emerged around 10 years ago. Back then the loa
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