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New Regulation Expected for Payday Loan Comparison Websites

New Regulation Expected for Payday Loan Comparison Websites

Payday loan comparison websites (PCWs) will have to get to get to grips with new regulation following a recent update from the Financial Conduct Authority (FCA). The FCA has formally responded to the investigation carried out last November by the Competition and Market Authority (CMA) which is working on remedies to high-cost-short-term lending companies (HCSTS), or those offering payday loans. This response follows the introduction of a price cap on payday loans introduced in January 2015 that limits the amount payday lenders can charge to 0.8% daily interest or £124 per £100 borrowed. In an effort to increase competition in the industry, safeguard customer details and improve transparency, the CMA presented six remedies to improve competition: Enable consumers to search according to the ... »