The manner in which the so called " Pay Day" lenders treat consumers behind with repayments, is coming under investigation by the Financial Conduct Authority (FCA) who take over responsibility for consumer credit from April.

Tough incoming regulations that will govern the amount of times a loan can be rolled over and how they deal with defaulting customers, are expected to cause an exit from the sector of many companies hoping to make a fast buck from the short term lending market. Clients unable to raise funds elsewhere are borrowing small amounts of money needed urgently, at rates between 1,000 to 6,000 pct. Over a third of current borrowers are struggling to meet repayment terms, that spiral out of control very quickly if you are borrowing at four figure interest rates.