Chancellor George Osborne has said he wants the new regulator, the Financial Conduct Authority, to "look at the whole package" of charges for payday loans.
He said this would include considering a cap on arrangement fees and penalties as well as the interest rates, in order to put a "cap on the total cost of credit".
More top news
Rain across central Britain with longer, intense downpours with thunder in places this evening. A lucky few will stay sunny and dry.
Planning on going to the London Marathon tomorrow? Read our handy guide first!
Labour plans to cap above-inflation rent rises over a three-year period, if they win the General Election.