- Daily cap
- Interest and fees capped at 0.8% a day
- Default fees
- No more than £15
- Total cost cap
- Never more than 100% of the amount borrowed
- First step
- Do not take a new loan to repay an old one
On this page
The rules that protect you
Since 2015, the FCA has capped the cost of high-cost short-term credit.
- Interest and fees cannot exceed 0.8% of the amount borrowed per day.
- Default fees cannot exceed £15.
- You can never be made to repay more than twice what you borrowed in interest, fees and charges.
- Rollovers are limited to two.
Continuous payment authority
Many payday lenders take payments using a continuous payment authority (CPA) on your debit card. A lender can only try to use it twice if a payment fails, and cannot take part payments after that. You can cancel a CPA by telling your card company, and the lender should not stop you. Do this if payments are leaving you without money for essentials, but speak to the lender or an adviser too.
Talk to a free adviser first
An adviser can look at your whole budget, deal with creditors for you and explain which option suits you. Get free debt advice.
What to do if you cannot repay
- Contact the lender and ask for a repayment plan. They must treat customers in difficulty fairly.
- Check that the lender is FCA-authorised. If not, it may be an illegal lender: report it to Stop Loan Sharks on 0300 555 2222.
- Do not take another payday loan to repay one. It is a quick way to build debt.
- Check you have not been charged more than the caps allow.
- Look at cheaper credit such as a credit union.
Your options
- A debt management plan includes payday loans.
- An IVA, debt relief order or bankruptcy may suit bigger problems.
- Breathing Space gives 60 days of protection while you get advice.
Complaining about a payday lender
Complain to the lender. If you are unhappy with its response, or it has not replied within eight weeks, take it to the Financial Ombudsman Service. Complaints about unaffordable lending are common, so ask a free adviser to help.
Frequently asked questions
Can a payday lender keep adding interest?
Not beyond the caps. The total cost can never exceed twice what you borrowed, including interest, fees and charges.
Can I cancel the CPA?
Yes. Tell your bank or card provider, and the lender must not interfere. It does not cancel the debt, so contact the lender too.
Will payday loans stop me getting a mortgage?
They can make it harder. Lenders look at how often you use high-cost credit and whether you have missed payments.
What if the lender is not authorised?
Report it to Stop Loan Sharks. You may not have to repay an illegal lender, but get advice first.
Can I include payday loans in an IVA?
Yes. They are unsecured debts and can usually be included.
This guide gives general information and is not personal advice. Rules and limits change, so check with a free adviser before acting. Last reviewed 11 November 2026.