Payday loan providers are split over an idea to restrict the amount of rollovers of short-term, high-interest loans, MPs be aware.
The town watchdog, the Financial Conduct Authority (FCA), has proposed a restriction of two extensions of payday advances if borrowers decided to go with to not repay.
Work of Fair Trading (OFT) has recommended this 1 rollover had been an indicator that the debtor was at trouble.
But loan providers told MPs that rollovers had been suitable in some instances.
Payday financing will be placed beneath the microscope by MPs amid a defence from a number of the industry's biggest players.
People in the company choose Committee quizzed loan providers, customer teams, regulators and a minister concerning the industry.
Elsewhere, Labour frontrunner Ed Miliband criticised exactly exactly just just exactly what he called Britain's "Wonga economy", saying that the increase of payday lenders symbolised the squeeze on residing criteria dealing with scores of families.
He accused the businesses of preying regarding the susceptible, making a "quiet crisis" for huge number of households kept with debts these people were struggling to repay.