Debt charity StepChange have welcomed today's proposed new rules for payday lenders, saying they were a "crucial move towards a new era for consumer credit."
The charity have helped more than 30,000 people struggling with payday debt in the first half of this year, which is almost the number it dealt with across the whole of 2012. 7,000 of their clients this year are people who have five or more payday loans.
StepChange Debt Charity head of policy Peter Tutton said:
"The current regulatory regime has left consumers inadequately protected against poor practice from the payday lending industry."
"The FCA's proposals represent a crucial move towards a new era for consumer credit."
The FCA will take on new powers to ban adverts however there will be no new rules governing the interest rates charged by the companies.
New rules on the way for lenders in how they grant loans and demand payments, but no changes to the interest rates or fees they can charge.