Are pay day loan companies drawing people into debt?
With concerns that some companies are lending irresponsibly Wales This Week have been putting lenders to the test. Watch the full story Monday at 8pm on ITV Cymru Wales.
The well-known expert in personal finance, Martin Lewis has backed Bethan Jenkins' Financial Education Bill. He said:
An Assembly Member has been setting out a potential new law that she hopes will help tackle the rising reliance on payday loans companies. Bethan Jenkins will introduce a backbench Financial Education and Inclusion Bill in the Senedd tomorrow.
If it wins support from other AMs, the bill would lead to more financial education in schools and later in life. It would also look at what more local councils could do, for instance in preventing access to payday lenders' websites on authority-owned computers.
Bethan Jenkins has praised existing financial education in schools, but says more can be done.
Plans to tackle payday lenders is being discussed in the Senedd today.
There has been a call for legislation to protect people who fall victim to short-term high interest loans.
Assembly Member Bethan Jenkins says the law would improve financial education in schools if the bill is passed.
Huw Lewis AM, Communities and Tackling Poverty Minister, says more should be done to promote alternatives to payday loans.
Mr Lewis was appointed Communities and Tackling Poverty Minister in March this year. He is currently reviewing the Welsh Government's plans for tackling poverty, which include extending networks of credit unions and advice services.
There are currently 34 credit union offices and 256 collection points across Wales.
Action needs to be taken against payday loan companies as welfare reforms begin to bite, according to Communities and Tackling Poverty minister Huw Lewis AM.
Mr Lewis has submitted evidence to a consultation being carried out by the Office of Fair Trading (OFT) who want to refer the payday loan market to the Competition Commission.
OFT research found "a concerning picture of the UK payday lending market" and Mr Lewis said he has "deep concern" about the impact on communities.
Payday loan firm Yes Loans has had its licence revoked after using "deceitful and oppressive business practices", the trading watchdog said today.
Yes Loans, based in Cwmbran, arranged expensive short-term loans for some consumers rather than the products they were initially asking about and misled consumers into believing it was a loan provider rather than a credit broker, the Office of Fair Trading (OFT) found.
The company used "high pressure" sales tactics to get consumers to give their card details on the false premise that they were needed for security checks, said the OFT
It also took brokerage fees without making it clear that a fee was payable and sometimes did this without customers' consent.