Far too many people in Britain rely on high-cost short-term credit from alternative lenders.
Payday lender Wonga has said that it is writing off £220 million of debts from 330,000 customer after implementing new affordability checks.
An advert for the payday loans company Wonga has been banned by the Advertising Standards Authority for trying to claim that the 5853% representative APR it charges for its loans was “irrelevant”.
The government is to introduce a cap on the cost of payday loans.
Controversial payday loans companies, some charging interest rates as high as 7,000%, have experienced phenomenal growth since the start of the recession.