Following a consultation process earlier in the year, the FCA has announced the details of the “price cap” that will be imposed on high-cost-short-term credit from 2 January 2015. In summary, interest rates will be capped at 0.8% per day, default fees will be capped at £15 and there will be an overall cap on fees and interest of 100% of the amount borrowed.
To read the FCA’s press release click here.