The Financial Conduct Authority's cap on the interest charges and fees set by payday lenders will ensure customers will never be hit with loan costs higher than the amount borrowed.
ITV News Business Editor Joel Hills has tweeted the FCA's key proposals:
FCA caps interest charges on payday loans and default fees. Overall cost of payday loan "will never exceed 100% of amount borrowed".
FCA says cost of borrowing a £100 payday loan for 30 days (repaid on time) will never exceed £24. It's currently £30.
FCA says default charges "cannot exceed £15". Wonga's was £30 but was recently lowered to £20.
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