FCA reveals financial hardship of average loan users

Prior to announcing proposals for a new cap on the costs of taking out loans from payday lenders, the FCA conducted a survey of 2,000 representative customers.

The results identify the level of financial difficulties those borrowing endure.

RCA is proposing an initial cost cap of 0.8 per cent per day of the amount borrowed for new loans or loans rolled over. Credit: RCA
Currently 1.6 million people in the UK take out 10 million loans valued at a total £2.5 billion. Credit: RCA

Read: Loans cap wrestles with complex problem of lending

Advertisement

Payday loans interest rates capped from January

The Financial Conduct Authority has announced plans to impose a price cap on payday lenders from January.