H&T Pawnbrokers supports FCA regulation

H&T Pawnbrokers has shown its support for a new cap on the amount that payday lenders can charge their customers, following the announcement yesterday. 

The Financial Conduct Authority (FCA) said payday loan rates will be capped at 0.8% per day under new rules due to take effect in January 2015.

The price cap plan – which includes both interest and fees – means that no-one will have to pay back more than twice the amount they borrowed, and there will be a £15 cap on default charges.

John Nichols, chief executive for H&T Pawnbrokers said: “[We] fully support the price cap rules announced by the Financial Conduct Authority, and operate within FCA guidelines. We acknowledge the need for these industry changes, which are fair for both consumers and businesses.

“Previous practices by certain operators have done significant damage to the industry’s reputation, which is why we are supportive of actions taken by the FCA to protect the customer. What is important is that people without access to standard forms of credit have affordable options available to them, and this is what we provide.”