Plans to cap the cost of payday loans to be announced by City regulator, weeks after ministers omitted the measure from Government's new rules on the sector

The Financial Conduct Authority (FCA) is to announce plans to cap the interest rates charged by payday loan companies such as Wonga and QuickQuid. A compulsory interest rate cap had been ruled out by ministers last month when they announced a string of tougher rules for the sector, such as affordability checks on borrowers, a ban on rolling loans over more than twice, and restrictions no what payday lenders can say in advertisements. The move comes amid heavy criticism of payday lenders for targeting vulnerable customers and charging high interest rates, which can exceed 5,000pc on an annual basis. Justin Welby, the Archbishop of Canterbury, has been among the fiercest critics of the sector.....Read more here