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Has the FCA got the payday loan cap right? Have your say!

edited 15 July 2014 at 7:54AM in Loans
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Former_MSE_WendyFormer_MSE_Wendy Former MSE
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edited 15 July 2014 at 7:54AM in Loans
The financial regulator has announced details of the long awaited cap on payday loans today and the CEO, Martin Wheatley, wants your views.
Initial cost cap of 0.8% per day. For new loans, or loans rolled over, interest and fees must not exceed 0.8% per day of the amount borrowed.


Fixed default fees capped at £15, which protects borrowers to repay. If borrowers cannot repay their loans on time, fees must not exceed £15.


Total cost cap of 100%, which protects borrowers from escalating debts. Borrowers must never have to pay back more in fees and interest than the amount borrowed.

He says he's confident the FCA has set the cap at the right level to protect consumers. What do you think?

Do you think the FCA has struck the right balance?
What do you think about people not being able to take out a payday loan as a result of a cap?
Please reply with your thoughts below.

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Read the full MSE News story: Guest comment: Have we got payday loan cap right?
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