This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-28305886

The article has changed 7 times. There is an RSS feed of changes available.

Version 0 Version 1
FCA proposes payday loans cap of 0.8% per day FCA proposes payday loans cap of 0.8% per day
(35 minutes later)
Plans for a cap on payday loan interest rates from January 2015 have been announced by UK regulator the Financial Conduct Authority. Plans for a cap on the amount that payday lenders can charge their customers have been announced by the City regulator.
Payday loan rates should be capped at 0.8% per day of the amount borrowed, the FCA said. Payday loan rates should be capped at 0.8% a day of the amount borrowed, said the Financial Conduct Authority (FCA).
This works out at about a 1,200% annual percentage rate (APR), the regulator said. And in total, no one will have to pay back more than twice what they borrowed.
However, people should not have to pay back more than double of the amount borrowed, the regulator added. The payday industry said the changes - due in January 2015 - would mean more people turning to loan sharks.
"For the many people that struggle to repay their payday loans every year, this [proposal] is a giant leap forward," said FCA chief executive Martin Wheatley. There will also be a cap on default charges, which is likely to be set at £15.
"For the many people that struggle to repay their payday loans every year, this is a giant leap forward," said FCA chief executive Martin Wheatley.
Plans for a cap were announced by the Chancellor, George Osborne, last November.
Have you taken out a payday loan? Email us at haveyoursay@bbc.co.uk adding 'Payday loans' in the subject heading and including your contact details.