Research and analysis

A cap on the total cost of credit: impact on business and consumers

Research on the likely impact of a variable cap on the total cost of high cost credit.



This research was commissioned by the Department of Business, Innovation and Skills (BIS) from the Personal Finance Research Centre (PFRC) at Bristol University.

The research looked at the likely impact on lenders and consumers of introducing a variable cap on the total cost of credit that can be charged in the short-to-medium term fixed-rate credit markets. It covered home credit, pawnbroking, retail payday lending (carried out in‐store) and online payday lending.

The government has published a response to the report.

Published 6 March 2013