By Jonathan Davies
The amount of interest that can be charged per day by payday lenders has been capped by the financial regulator.
Under new rules announced by the Financial Conduct Authority (FCA), payday lenders will only be able to charge a maximum of 0.8% per day.
What that means is that anyone taking out a loan over 30 days will not pay more than £24 for every £100 borrowed.
It means that no one will have to pay more than double what they borrowed. And the FCA has also introduced a £15 cap on default charges.
"For people who struggle to repay, we believe the new rules will put an end to spiralling payday debts," said FCA chief executive Martin Wheatley.
"For most of the borrowers who do pay back their loans on time, the cap on fees and charges represents substantial protections."
The plans were first announced in July, but went under consultation and will now come into effect in January.
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