Finance

Payday lenders will face a cap on what they can charge borrowers, under plans revealed by the financial regulator today.

Over 6,000 borrowers who were lent more than they could afford are to be refunded a combined total of more than £700,000 by payday lender The Money Shop.

New rules should be brought in to help customers renewing their car and home insurance policies get a better deal, the Association of British Insurers (ABI) has told the regulator.

Banks that pay ultra-low interest rates on savings accounts because customers tend not to switch away may face a crackdown from the industry watchdog.

Payday lenders will no longer be able to roll over loans more than twice from today, while they also face tougher restrictions on taking money from borrowerers' accounts.

Thousands of Wonga customers are due compensation after the payday lender pressured 45,000 customers into repaying loans by sending letters from non-existent law firms chasing debt, and overcharged thousands more following "technical errors".

The Church of England has released a rap song featuring MoneySavingExpert.com creator Martin Lewis which warns of the dangers of taking out payday loans. It comes as a regulator criticises the industry for lacking competition.

Reminder letters are being sent out this month to some of those who were mis-sold card and identity theft policies from CPP and the banks. If you get one, don't ignore it as it could be worth £100s.

Millions of Santander current account customers will face new overdraft charges from 19 August, which will leave some paying more than they do now.