Payday Loans: Regulator Confirms Price Cap
The City regulator has confirmed it is setting a price cap on payday loans to help ensure borrowers are not being ripped off.
The Financial Conduct Authority's (FCA) initial cost cap, due to come into force on 2 January, has been set at 0.8% per day.
Fixed default fees will be capped at £15 to help protect borrowers struggling to repay.
A total cost cap of 100% was aimed, the FCA said, at shielding people from escalating debts and it meant that borrowers must never have to pay back more in fees and interest than the amount borrowed.
Read the whole ruling from MSN-Money HERE
AT LAST, we hear what is going to be done about these rip-off merchants.
It is a good start, but I, for one, hope this will only be "the start".