Consumer group Which? recently found that 79% of people, equating to around 38.5 million adults, use some form of credit.
Its study found half of people who used a payday loan or dipped into an unauthorised overdraft said they had been rejected for credit in the past year.
Which? executive director Richard Lloyd said:
It's time for a crackdown on irresponsible lending, especially for high cost lenders who are exploiting consumers struggling in the current economic climate, so we're pleased to see the Government planning tough action.
We want to see the regulators immediately crack down on payday lenders who flout the rules and for new powers to be used to take strong, proactive action to clean up the whole of the credit market.
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