The law is to be changed in order to limit the interest rates charged for “payday loans”, the BBC reported.
Ministers will alter the Financial Services Bill to give the new Financial Conduct Authority powers to limit rates of loans, which are often taken out by those in financial difficulty and carry annual interest rates of up to 4,000 percent.
The government has agreed to introduce its own amendment to the bill next Wednesday following an earlier amendment put down by a Labour peer.
Treasury minister James Sassoon told the House of Lords: “We need to ensure that the Financial Conduct Authority grasps the nettle when it comes to payday lending and has specific powers to impose a cap on the cost of credit and ensure that the loan cannot be rolled over indefinitely should it decide, having considered the evidence, that this is the right solution.”
'Payday loan' rates to be limited
