FCA confirms cost caps on payday lenders

The changes will mean someone taking out a loan for 30 days and repaying on time will not pay more than £24 in fees and charges per £100 borrowed, the Financial Conduct Authority (FCA) said. FCA chief executive Martin Wheatley said the rules, which will be introduced on 2 January, "strike the right balance" for both firms and consumers. Following a consultation earlier this year, the price cap structure restricts payday lenders in three ways: Initial cost cap of 0.8% per day - Lowers the cost for most borrowers. For all high-cost short-term credit loans, interest and fees must no...