Payday loan charges cap announced by FCA - This is why the PRA is so important for 'regulation' of the banking asset based finance divisions

A cap on the amount that payday lenders can charge their customers has been announced by the City regulator.

Payday loan rates will be capped at 0.8% of the amount borrowed a day, said the Financial Conduct Authority (FCA).

 
Sounds like a typical rate from a factoring company such as Lloyds Commercial Finance!

In total, no one will have to pay back more than twice what they borrowed, and there will be a £15 cap on default charges.

The loan restrictions will start from January, the regulator said.

"For people who struggle to repay, we believe the new rules will put an end to spiralling payday debts," said FCA chief executive Martin Wheatley.

"For most of the borrowers who do pay back their loans on time, the cap on fees and charges represents substantial protections," he added.

The price cap plan - which includes both interest and fees - remains unchanged from proposals the regulator published in July.

ADMIN: THE 'BANKING' FACTORING INDUSTRY GOING UNDER THE PRA IS A GAME CHANGER


http://www.bbc.co.uk/news/business-30000472