The way payday firms treat struggling customers will come under scrutiny by the City regulator, which has announced a new inquiry to see how sympathetic lenders are when borrowers have trouble paying back their debts.
The Financial Conduct Authority, which takes over supervision of the consumer credit market, including payday firms, from April 1, wants to see whether payday firms and other high-cost short-term lenders are putting too much focus on profits rather than consumers' interests.
It is treating the investigation as "a priority" because three-fifths of complaints to the Office of Fair Trading (OFT) are about how debts are collected, and more than a third of payday loans are repaid late or not at all - equating to around 3.5 million loans each year.
The FCA said its new rules should reduce the numbers, but it also wants to see struggling borrowers helped by discussions on the different options open to them rather than "piling on more pressure" by simply calling the debt collectors.
More top news
Donald Trump has blamed radical Islamic terrorism for UK's 13% rise in crime.
Theresa May said she is "ambitious and positive" for a Brexit deal as EU leaders gave the go ahead for preparations for second phase talks.
Merseyside Police have launched an investigation after crowd trouble at Goodison Park - during which a fan appeared to attack a player.