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Watchdog clampdown on payday lenders

3 October 2013 Last updated at 15:16 BST

Plans for a clampdown on payday lenders have been announced by watchdog the Financial Conduct Authority.

The organisation says it will ban misleading adverts for high cost loans, place "risk warnings" on all adverts, and stop borrowers extending their loans too often.

The new rules are expected to come into force in April next year.

Simon Gompertz reports.