FCA Propose Interest Rate Cap on Lenders

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The FCA have today announced proposals to limit interest rate and charges on loans, in a move to combat the high rates, charged by payday lenders. The announcement includes a proposal to introduce a maximum daily rate (for interest and charges) of 0.8%. This compares to rates as high as 4.3% currently charged by some pay day lenders. It also includes proposals for a total cost cap of 100% and a maximum £15 default fee. Responces to the proposals are requried to be received by the FCA by 1 September 2014. Further information and details of these proposals can be found at: https://www.fca.org.uk/news/fca-proposes-price-cap-for-payday-lenders