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New Strong New Pay Day Lending Rules Are Whats Needed

 

 

Treasury Select Committee Member John Mann MP has welcomed today’s announcement by the Financial Conduct Authority that the costs of borrowing a pay day loan will be capped from January next year.

 

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.

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