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Payday loan caps and when you can claim a refund

The FCA capped payday loan costs in 2015. If you were sold loans you couldn't afford before or after that, you may be owed a refund of interest and fees.

Payday Loans3 min readReviewed July 2026

Since January 2015 the total cost of a payday loan is capped: interest and fees cannot exceed 0.8% per day, default fees are capped at £15, and the total amount you repay can never be more than double what you borrowed.

If you were lent money you couldn't sustainably afford — signs include repeat borrowing, rollovers, or new loans taken to repay old ones — you may have a valid affordability complaint. Complaints go first to the lender, then to the Financial Ombudsman if rejected.

Successful complaints typically result in refunds of interest and fees, and removal of the loans from your credit file. You do not need to pay a claims management company: the complaint template on MoneyHelper's site is free and effective.

Guidance, not personalised helpThis article is written to inform. It isn't personalised debt or legal advice — a Debt Compass adviser will discuss your options and eligibility with you before you choose a route.