I've spoken to people on both sides of the debate - the industry and anti-debt campaigners - and both are questioning the Government approach.
The industry is worried that the Government is using the Australian model, where they set an upper cap earlier this year. The industry here says that evidence from Australia is that it has forced some payday lenders out, which has opened the door for illegal loan sharks.
If we had the same kind of cap, it would cost about £24 to borrow £100 for a month, which is not a lot different from the situation we already have where the average is about £25 for that month.
In Australia, many of the payday firms have also managed to find loopholes.
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