Payday loans costs to be capped

Payday loans costs will be capped under plans being announced by the Chancellor. Credit: PA Wire

Payday loans costs will be capped under plans being announced by Chancellor George Osborne.

New financial regulator the Financial Conduct Authority will set the level of the cap, which will cover fees charged on the loans as well as interest.

Treasury officials said the Government had always kept the case for a cap under review and there is now "growing evidence" internationally to support the move.

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Payday loans to be capped

Payday loans costs will be capped under plans being announced by Chancellor George Osborne. Regulator the Financial Conduct Authority will set the level of the cap, which will cover fees charged on the loans as well as interest.