Russell Hamblin-Boone, chief executive of the Consumer Finance Association (CFA), which represents short-term lenders, argued that more people would turn to illegal lenders if the cost of credit were capped and defended payday loans saying companies were already checking customer's ability to repay.
Responsible payday lenders apply the same level of expertise to assessing creditworthiness as banks and credit card providers, including carrying out credit checks on new customer applications.
Modern technology means that this can happen very quickly. Our members check thousands of pieces of data during their affordability assessments, but the customer is not asked thousands of questions. That doesn't mean the checks aren't being carried out.
The FCA will take on new powers to ban adverts however there will be no new rules governing the interest rates charged by the companies.
New rules on the way for lenders in how they grant loans and demand payments, but no changes to the interest rates or fees they can charge.