Bassetlaw MP, John Mann, has welcomed steps that have outlined by the Financial Conduct Authority to cap the costs Payday Lenders will be allowed to charge their customers when they take out short term loans.
The Financial Conduct Authority has announced three key proposals that, if enacted, would see the interest rate and fees on loans capped at 0.8% per day, introduces fixed default fees capped at £15 and a total cost cap of 100% meaning that no-one would have to pay more in fees and interest than the amount they borrowed in the first place.
John Mann MP said “I welcome the news that the FCA is clamping down on the Payday lending market which has been home to some pretty unsavoury characters for far too long.”
“The proposed measures will make a significant difference to those people reliant on Payday lenders and brings some much needed regulation to this area of the financial services market.”
“What we now need is to give local authorities across the UK the powers to curb the number of Payday lenders on our high streets”