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Meanwhile, payment day creditors are already on the verge of term following the FCA's statement of hard new guidelines they will have to face next year. While we have put in place strong new regulation for consumers to control the pay-day banking sector, we are now asking them to fix an upper limit on the costs of borrowing.
This will ensure that hard-working individuals are serviced by the financial system. We will have an upper limit on the overall costs of the loan - we will look at the whole deal, not only the interest rate, but also the handling and penalties. It is a system of banks that works for hard-working individuals and ensures that some of the totally brazen charges and intolerable practice are treated.
Finance Secretary of the Ministry of Finance Sajid Javid said: Payment day loans must put its home in order and usury must be a thing of the past.
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