City regulator confirms proposals to cap interest and fees on payday loans in an unprecedented crackdown on the industry

Borrowers will never have to pay back more twice the value of the loan they take out with payday lenders under new rules that will come into force in January.The Financial Conduct Authority (FCA) also ruled that payday lenders cannot charge more than 0.8pc per day in interest and fees, and must not charge more than £15 should borrowers default on their loans. Tuesday's announcement confirms proposals first made in July, aimed at protecting customers from the exorbitant rates associated with the industry. The rules mean that no customer will ever pay back more than twice what they borrowed, and someone taking out a loan for 30 days and repaying on time will not pay more than £24 in fees and charges per £100 borrowed. Martin Wheatley, the FCA's chief executive officer, said he was "confident that the new rules strike the right balance for firms and consumers".....Read more here