A £450 million one-off levy on the payday loans industry should be used to create a "new generation" of affordable lenders to take on Britain's legal loan sharks, a leading think tank has said.
A report by the Institute for Public Policy Research (IPPR) called for a levy to be used to compensate for the "direct financial harm" caused by the £180 billion consumer credit market.
Revenue from the levy would then be used to mobilise not-for-profit institutions to compete with firms such as Wonga, Quick Quid and Payday Express.
Not-for-profits and credit unions could be hosted by the Post Office, and lend "small amounts at affordable rates to ordinary people", the report said.
UK households collectively owe nearly £160 billion in unsecured consumer credit, with low-income households "vulnerable to exploitation by unscrupulous firms".
More top news
The banking group has also allocated £283m towards tackling its mistreatment of people in mortgage arrears.
Thursday will be a breezy day with sunshine and blustery showers developing for most of us.
She had been with friends at the station at 11pm the previous evening. Officers are now working to find out how she ended up on the tracks.