Citizens Advice said the Office for Fait Trading (OFT) must take "tough and immediate action" on payday lenders following a 12-week deadline to prove their good behaviour.
Analysis from 780 cases reported to Citizens Advice between November 2012 and May this year found:
- People were being chased for loans they had never taken out
- Customers were being "hounded" at their home to shame them into paying up
- Struggling borrowers' bank accounts were being drained of cash "without any warning" by lenders using a type of payment agreement called a continuous payment authority (CPA)
- In some cases lenders also took more than they were owed and refused to give a refund
More top news
Billionaire Microsoft co-founder Paul Allen has claimed discovery of the Japanese battleship Musashi that was sunk by the US Navy in 1945.
Friday will be mostly dry with sunny spells for much of the UK. Temperatures will be mild across the country.
Some famous Liberal Democrat names will be fighting for their political lives in the election, now just over two months away.