Regulator to cap payday loan credit rates

The Financial Conduct Authority (FCA) will now be required by the government to cap interest rates on payday loans. The cap will be included in the Banking Reform Bill, which is already going through Parliament, however the level of the cap is yet to be announced.  The payday loans industry has been heavily criticised in recent months over the affordability of the loans, which can exceed 5,000% on an annual basis. Critics claim the firms take advantage of vulnerable people and the way they are marketed mask the damaging effects of the high interest rates. The Chancellor, George ...