Individuals making use of payday loan providers along with other providers of high-cost short-term credit will look at price of borrowing autumn considerably under proposals established by the Financial Conduct Authority (FCA) today.

The FCA’s proposals for the limit on payday lending mean that from January 2015, for new loans that are payday including if they’re rolled over, interest and costs should never surpass 0.8% each day of this quantity lent. Fixed default fees cannot exceed Ј15 additionally the overall price of a loan that is payday never ever meet or exceed 100% for the quantity lent.

Martin Wheatley, the FCA’s chief executive officer, stated:

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