New Limits Are To Be Imposed On How Much Interest Payday Loans Companies Can Charge Customers

The video discusses Scott's struggle with payday loan debt and the Financial Conduct Authority's (FCA) introduction of a cap on interest rates to promote responsible lending. The cap aims to prevent consumers from paying more than double the loan amount, but lenders argue it could force them to close. The video highlights the role of banks in the lending market and the need for proper affordability checks to protect consumers from unmanageable debt.

What was Scott's main reason for borrowing money from payday lenders?

• To pay for luxury items

• To invest in a business

• To travel abroad

• To meet basic living expenses

What is the proposed cap on interest rates by the FCA?

• 50% of the loan value

• 75% of the loan value

• 100% of the loan value

• 150% of the loan value

How much money will consumers save on average per year due to the FCA's cap?

• £50

• £100

• £193

• £250

What has been a significant consequence of banks not lending as they used to?

• Decrease in consumer spending

• Rise in stock market investments

• Boom in alternative lending markets

• Increase in savings

What is a necessary step for lenders to ensure responsible lending?

• Conducting proper affordability checks

• Offering more loans

• Increasing interest rates

• Reducing loan amounts