News by email Donate


Top Stories

Most Read

Popular Videos

UK Notes
UK News

Christian charity welcomes new payday lender rules

The Financial Conduct Authority (FCA) says a cap on interest and fees will be introduced from January.

The overall cost of a loan will never exceed 100% of the amount borrowed - protecting consumers from escalating debt.

The FCA has accepted the new rates could mean some customers will no longer be able to access the loans they previously did.

There's concerns this will force some people to use illegal lenders.

But Matt Barlow, CEO of Christians Against Poverty, told Premier's News Hour he doesn't think that will happen: "I was very encouraged by the research that the FCA had done around people that had be turned down for pay day loans.

"It showed less than 5% of people who couldn't get a pay day loan even considered getting an illegal loan." He said.

The proposals should offer more protection to customers who can often end up paying rates of more than 300% pa.

The FCA wants rates capped at 0.8% a day.

Fewer loans have been issued since July 1 when payday lenders were given new rules which included forcing them to carry out more affordability checks.

Listen to CEO of Christians Against Poverty Matt Barlow speaking on Premier's News Hour:

Continue the conversation on our Facebook page

A Monthly Gift Of £5 Makes A World Of Difference

In a world of fake news there’s never been a greater need for quality Christian journalism. Premier’s mission is to provide the Church with the most up to date and relevant news, told from a Christian perspective. But we can’t do it without you.

Unlike many websites we haven't put up a paywall — we want to keep our journalism free at the point of need and as open as we can. Premier’s news output takes a lot of time, money and hard work to produce. No one in the UK is sharing news like we are across radio, magazines and online so please help us to continue that today.

For a monthly gift of £5 or more we’d also be able to send you a free copy of the brand new Premier Bible, a wonderful Anglicised version of the NLT packed with exclusive bonus content, reading plan and resources to help you get the most out of scripture.

Your monthly support will make a world of difference. Thank you.

Set up a monthly gift

Related Articles

Sign up to our newsletter to stay informed with news from a Christian perspective.