18 August 2026

In April, Prof Galina Andreeva, Director of the Credit Research Centre, participated in an FCA Roundtable to review the High-Cost Short-Term Credit (HCSTC) price cap, in place since 2015.

As background, the price cap means that when HCSTC loans are taken out or rolled over, the combined interest and fees charged must not exceed 0.8% per day of the amount borrowed. If borrowers default, fees must not exceed £15. Firms can continue to charge interest after default but not above the initial rate. Finally, borrowers must never have to pay more in fees and interest than 100% of what they borrowed.

The price-cap was last reviewed in 2017. Since then, the market and wider economic environment have changed significantly, both for consumers and firms.

In 2017, the FCA made the decision to maintain the HCSTC price cap at its current level and committed to looking at it again after three years but chose to delay because of Covid and the cost-of-living challenges.

This Roundtable offered a key opportunity to consider whether the price cap continues to work effectively in the interests of consumers and markets and remains fit for purpose in the current economic environment.