Payday Loan Caps To Cut The Cost Of Borrowing | LBC
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The headline measure was a limit in the overall cost of a loan, which the Financial Conduct Authority (FCA) said should never exceed 100% of the total amount borrowed.
For example, if a borrower was to take out a loan of £300, the person's liability would not be more than £600.
Fixed default fees were also to be capped at £15, the regulator said, with interest on unpaid balances and default fees not exceeding 0.8% per day of the outstanding amount.
For example, if a borrower was to take out a loan of £300, the person's liability would not be more than £600.
Fixed default fees were also to be capped at £15, the regulator said, with interest on unpaid balances and default fees not exceeding 0.8% per day of the outstanding amount.
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