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Labour wants payday loan price cap brought forward

Labour is calling on the Government to bring forward plans to introduce a cap on the cost of payday loans.

Last month, the Government unveiled plans to amend the Banking Reform Bill and cap the overall cost of short-term credit.

The FCA will take over payday loan regulation next April after the Government suffered defeat from Labour amendments to the Financial Services Act 2012.

The Government amendment states the FCA will only introduce the payday loan cap on 2 January 2015, giving it time to consult on how to implement the cap.

In its own House of Lords amendment, published today, Labour wants the date brought forward to 1 October 2014.

Labour says the cap must be in place in time for next Christmas, highlighting Money Advice Service research showing more than one million people take out payday loans for Christmas.

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