Gillian Guy, the Chief Executive of the Citizens Advice Bureau has said that The Financial Conduct Authority "needs to be tougher" on payday lenders.
The Financial Conduct Authority is taking over regulation of payday loans from the Office of Fair Trading.
Tony Boorman Chief Executive of the Financial Ombudsman Service also said that they will investigate "fair lending practice" to make sure customers are getting loans that they are able to pay.
He said: "customers often want lenders to treat them sympathetically and sensibly" when paying loans back.
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