Sajid Javid, Economic Secretary to the Treasury told Daybreak that there was "lots of irresponsible advertising" in the payday loans sector.
He said it needs to be addressed by an independent regulator, to make sure vulnerable consumers are not being targeted.
Payday lenders could be made to change the way they target customers under new laws to be revealed by the government.
The measures come as a report reveals serious problems in the market are harming consumers.
More top news
Flooded in January, farming-driven Malawi ends 2015 facing its worst drought for more than 20 years. And now a slower tragedy is unfolding.
A hapless burglar has died from smoke inhalation and thermal burns after getting stuck in a chimney while trying to rob a house.
From the canals of Venice to a remote island in the Pacific Ocean, the effects of climate change are worryingly visible across the globe.