The new rules governing pay day lending will see daily interest fees and charges capped to 0.8% per day, the cost of defaulting on a loan capped at £15 and the total cost of the loan capped at 100% of its original value.
John Mann said “This is the strongest piece of financial regulation announced in the past ten years and it will make a real difference to people.”
“The steps taken by the Financial Conduct Authority go far beyond what Parliament has asked for and I congratulate them on taking these bold steps.”
“For too long the pay day lending market was a poorly regulated Wild West environment where the consumers’ needs and best interests were neglected. These new measures go a long way in rectifying this.