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Payday loan firms warned over lending and debt collection

20 November 2012 Last updated at 16:32 GMT

The payday loan industry has been warned to improve the way it lends money and collects debts, or face fines or closures.

The Office of Fair Trading (OFT), in an interim report, says most of the 50 big firms it has been inspecting do not operate fully by its rules.

Simon Gompertz reports.

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