Uswitch comments on FCA payday loan cap

Commenting on the news that the Financial Conduct Authority (FCA) has introduced a cap of 0.8% per day on the amount that payday lenders can charge, David Mann, Head of Money at Uswitch.com, says: “This is a great victory that will help protect tens of thousands of vulnerable consumers.

“The FCA has finally shown payday lenders that it has the muscle required to take them on and from 2nd January no borrower will ever have to pay back more than twice what they borrowed. It also means that the most unscrupulous of the lenders – who are nothing short of modern day highwaymen – are likely to be forced out of business.

“However, today’s news doesn’t solve the escalating need for short term loans. We need more than vague promises of help to stop the most vulnerable people falling victim to loan sharks. The high street banks should follow the examples set in other countries by stepping up and engaging in micro-lending programs, to help those most in need of money. ”

FOR MORE INFORMATION

Ailene Barr

Phone: 020 3872 5610

Email: ailene.barr@uswitch.com

Twitter: @uswitchPR

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