Martin Lewis: Do we really need payday lenders?

Martin Lewis questioned the need for the payday loan industry

MoneySavingExpert.com founder Martin Lewis has told MPs "we'd all be a lot better off" without payday lenders.

He told the Commons Business, Innovation and Skills Select Committee: "Do we really need them (payday lenders)? I think we'd all be a lot better off without them and maybe it's worth the sacrifice for the few small number of people who actually do find them rather convenient.

"If you take 100 people who get payday loans, I would suspect 99% of them would find a cheaper and better alternative doing something else or not doing them.

So the problem is they're used by far too many people and they are not fit for the purpose that they are used for."

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Miliband's payday loans attack

Labour leader Ed Miliband has attacked payday loan lenders, claiming that "the Wonga economy is one of the worst symbols of this cost of living crisis." A Wonga executive has told MPs his firm's practice compares 'favourably' with credit cards.