Payday loan firms warned over lending and debt collection

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.

The OFT says it is worried by reckless lending and aggressive debt collection.

Director of Consumer Credit at the OFT, David Fisher, told the BBC: "The industry as a whole certainly needs to raise its game"

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