PARLIAMENTARY WRITTEN QUESTION
Credit: Interest Rates (29 August 2014)

The Government legislated to require the FCA to introduce a cap on the cost of payday loans, to protect consumers from unfair costs.

In making this decision the government considered the international evidence in support of a cap. As part of its work to design a cap to meet the needs of UK consumers, the FCA took into account international comparators conducting detailed case studies on experiences of price cap setting in Australia, Canada, US, Finland and Japan. The FCA spoke to international regulators and experts to understand the rationale and designs of price caps, as well as the impact they had on consumers and industry in these countries.