Payday loan interest cap (100%) - 118 money

dman1984

Hi,

I took a loan with a loan with 118 money in 2015, it is going to be paid off in May of this year. The loan was for £1000 and the repayments were circa £100 a month. The total cost of the loan was around £1400.

I was reading about the rules the FCA introduced in 2015 with the total cost cap being 100%, shouldn't i have been capped to £2000 for the whole loan?

Thanks

PeacefulWaters

If it's a three year term, it's hardly a payday loan.

TrickyDicky101

To expand on what PW states (and because I didn't know this before hand) the caps apply to High-Cost Short-Term Credit (HCSTC) as defined in the FCA handbook:

https://www.handbook.fca.org.uk/handbook/glossary/G3328.html

Short term means repayable within 12 months - so your agreement falls outside the definition (and thus the cap) as it was 24 months.

EDIT: Cap conditions available here:

https://www.fca.org.uk/news/press-releases/fca-confirms-price-cap-rules-payday-lenders