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
An intrepid group of activists is taking its message of independence to new heights by leaving giant 'Yeses' on hillsides across Scotland.
Newly-released documents reveal how British spymasters used an enticing female agent to test the mettle of rookie spies.
Researchers studying the King's remains believe he died after sustaining numerous blows to the head.