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 Australian government said Russia's participation in the Rio 2016 Games risks damaging the reputation of the Olympic movement.
PM Malcolm Turnbull said people convicted of terrorism-related charges would be held indefinitely if they pose an ongoing threat to society.
Democratic National Committee chair Debbie Wasserman Schultz stands down after leaked emails show party actively favoured Hillary Clinton.