In January 2015, the Financial Conduct Authority (FCA) introduced a set of new rules to regulate the high-cost short-term credit sector, often referred to as payday loans. Lenders can charge a maximum of 0.8% interest per day and late payment charges are capped at £15.
The FCA also imposed a cap on the total cost of credit, meaning that if you borrow from a payday lender, you will never pay back more than double the amount borrowed, including interest and fees.