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Clamp down on payday lenders

Britain's biggest payday lenders have been threatened with being put out of business after a damning report by the Office of Fair Trading uncovered evidence of "widespread irresponsible lending".

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Woman's loan gained £6,000 interest in three years

Ami Jarman took out a payday loan to pay for a new tyre for her car, initially borrowing £100, a week before her payday.

She told Daybreak that with interested she needed to payback £170, leaving her short for the next month, so she took out an additional loan to cover the cost of the first one.

Ami ended up paying £14,000 on her payday loan Credit: Daybreak

By the end of three years Ami had borrowed £8,000, and because of £6,000 in interest, she paid back £14,000.

"It's hard to get out of the circle once you are in it," she said.

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