Payday loan until payday:
The ceiling on interest rates for payday loans are do not exist. Don't be shocked if you come across 1,000% APR for payday loans. Expect to pay upwards of £25 for every £100 you borrow on a monthly basis. Payday loans has helped countless people in the UK to pay for household bills and clothing. The FCA however introduced a price cap where the initial cost cap will be set at 0.8% of the outstanding principal per day.
This will be on all interest and fees charged during the loan and when refinancing.
The cap on default charges will be £15. The price cap is in place to protect borrowers. Review on the price cap will take place in 2017 and the outcome will be determined by how well or badly the economic market has performed. Did you know you can ask your employer for a pay advance instead...