LONDON Nov 29 The cap on interest rates charged
on payday loans will be reviewed to see if changes are needed,
Britain's Financial Conduct Authority said on Tuesday.
The cap came into force in January 2015 after concern among
lawmakers and the Church of England about the impact very high
interest rates have on vulnerable people taking out short-term
loans to tide them over until payday.
"The FCA will assess whether there is evidence that suggests
that the cap should be changed. The FCA is also keen to see if
there is any evidence of consumers turning to illegal money
lenders directly as a result of being excluded from high cost
credit because of the price cap," the watchdog said in a
The examiniation of the cap will be part of a broader review
of "high cost credit" to see if any policy measures are needed.
(Reporting by Huw Jones, editing by Rachel Armstrong)