Payday loans to be capped

Plans for a new law to cap the cost of payday loans have been announced by the coalition government. The exact level of the cap has not yet been announced: it will be decided by the new industry regulator, the Financial Conduct Authority. The cap will be included in the Banking Reform Bill, which is currently going through Parliament.
 
 Chancellor of the Exchequer, George Osborne, said: 'We’re going to have a cap on the total cost of credit – we’re looking at the whole package, not just the interest fee, but also the arrangement fees as well as the penalty fees. This is all about having a banking system that works for hardworking people and making sure some of the absolutely outrageous fees and unacceptable practices are dealt with. It’s all about the government being on the side of hardworking people'.
 
 Source
: Press release 25 November 2013, HM Treasury
 LinksHMT press release | Citizens Advice press release (1) | Citizens Advice press release (2) | IPPR press release | BBC report | Daily Mail report | Guardian report | Inside Housing report

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Publication date: 
Nov 25 2013