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
There will be a three-way split across the UK this afternoon, weather-wise.
Nigel Farage has been forced again to field questions about his party's members on the day he wanted to be discussing a new election pledge.
Following Bradford City downing Premier League leaders Chelsea on Saturday, we take a look at the greatest FA Cup upsets.