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Payday loan charges cap announced by FCA

A cap on the amount that payday lenders can charge their customers has been announced by the City regulator.

Payday loan rates will be capped at 0.8% of the amount borrowed a day, said the Financial Conduct Authority (FCA).

In total, no one will have to pay back more than twice what they borrowed, and there will be a £15 cap on default charges.

The BBC's personal finance correspondent Simon Gompertz reports.

  • 11 Nov 2014
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