John Gathergood to advise FCA on Payday Loan Regulation

John Gathergood, Associate Professor of Economics at Nottingham School of Economics, is to advise the Financial Conduct Authority on the introduction of a cap to the cost of Payday Loans. The FCA are forming proposals to limit the cost to consumers in the form of an ‘interest rate cap’ to be announced in April 2014 and implemented from January 2015. John will advise the FCA on how to statistically model the impact of the cap and the likely effects on consumers and firms in the sector.

A cap to the cost of Payday Loans was announced by the Chancellor of the Exchequer in November 2013 with the FCA tasked to formulate the specifics of the level and type of cap to be implemented. The Chancellor said the policy is intended to ‘"make sure that hardworking people get a fair deal from the financial system, whether it's the banks or the payday lenders or the internet lenders".