Nigel welcomes payday loan cap

Nigel Evans has today welcomed the Government’s announcement that a cap on payday loans will be included in the Banking Reform Bill that is currently going through Parliament.

The Government is set to include controls on charges, including arrangement and penalty fees, as well as on interest rates. The level of the cap, which has not yet been announced, will be decided by the new industry regulator, the Financial Conduct Authority (FCA).

Speaking from Westminster, Mr Evans said:

“I think that this is a very welcome move and one that will be to the benefit of those who are in need of payday loans but for whom such an arrangement is currently one that can quickly spiral out of control.

“I think that the Government were right to look at this area and correct to have the FCA conduct an independent assessment of what that cap should be. There is similar legislation already in place in Australia and the sooner this can come into force in the UK the better protected people will be.”