Stricter rules for payday loan companies

Stricter rules for high-cost, short-term lenders are expected to be announced by the government.

After a year-long investigation by the Office of Fair Trading (OFT), the BBC reports it is thought lenders will face advertising curbs and be under closer supervision.

The government wants to limit the number of adverts shown per hour on TV and ensure the terms and conditions are displayed more prominently.

Many payday lenders' adverts feature heavily on television and the internet.

The loans are supposed to be of hundreds of pounds for a few weeks, but interest rates can amount to thousands of per cent on a yearly basis.

The new rules are intended to make sure that firms do not take advantage of people who are already struggling with debt.