Less than two months ago regulators warned against a payday loan cap

It's not been two months since the Financial Conduct Authority (FCA) released its consultation on payday lending - and recommended against a cap - and now politicians are attempting to bring one in. The FCA called such a proposal a "very intrusive proposition".

In October the FCA's "Detailed proposals for the FCA regime for consumer credit" the regulator warned that a price cap on the total cost of credit "could lead to prices increasing" - drifting towards the cap.

Alternatively, a cap could see "a significant reduction in lenders exercising forbearance." The FCA said that "neither of these ... would be beneficial for consumers."

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