The consumer watchdog has accused payday loan companies of "irresponsible lending", "pressure tactics" and other bad practices.
The OFT has given them them 12 weeks to prove they provide an important service, or else they could face closure.
However, there will be no cap on interest rates.
Consumer Editor Chris Choi reports:
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We look back at some of the stories, people and events that stood out in 2014.
It will be a frosty Christmas morning across the UK but any chance of snow is limited to the Scottish mountains.
Fainting dogs, dancing grooms and an attacker who picked on the wrong girl all featured highly in our most-read stories of the year.