The Financial Conduct Authority will still need to study the evidence surrounding payday loans before it decides whether to impose a credit limit.
Capping the cost of credit and the number of times the loan can be rolled over is a major market intervention.
It could bring huge benefits for consumers as a recent study in Japan has indicated, but experience in Germany and France has shown there can be equally momentous unintended consequences including reduced access to credit for the poorest and most vulnerable consumers, even driving them to illegal loan sharks.
These international lessons demonstrate that we need robust evidence to support any decision to introduce such a cap.
More top news
Tens of thousands of people may have been underpaid, the Department for Work and Pensions has admitted.
The outgoing Scottish Labour leader is reportedly a last-minute addition to the line up for the TV show.
Thousands of people have gathered in Harare as Zimbabweans prepare to protest against the rule of Robert Mugabe.