Why payday loan companies are on the rise

Total bank lending in Britain is set to shrink for the first time since 2009 and the lack of credit from mainstream banks could help payday loan firms grow further, according to a survey by the Ernst & Young Item Club.

Lending by alternative high-cost consumer credit providers has risen by 42% since 2007.

The BBC's Maryam Moshiri spoke to Neil Blake, a senior economic adviser to the Ernst & Young Item Club.

BBC News