Payday loan repayments to be capped for borrowers
15 July 2014 Last updated at 22:39 BST
People using payday lenders will see the cost of borrowing fall significantly from next year.
The financial regulator has imposed a cap on payday lending which means no one will have to pay back more than twice the amount they borrowed.
Last year around one and a half million people took out payday loans.
Kamal Ahmed reports.