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Payday loans: 'Once you're in it you can't get out'

Payday lenders could be forced to place "risk warnings" on their adverts to advise borrowers about the dangers of debt.

It is one of several new rules being proposed by the Financial Conduct Authority (FCA) to protect consumers.

The Today programme's Tom Bateman heard from Alan Hardman, who took out a payday loan to try to get out of a debt cycle.

"All I had to do was give them my phone number and the number on my card," Mr Hardman remembered.

He described how he had to borrow money "every fortnight for 18 months" after taking out the initial loan.

"Once you're in it you can't get out," he said.

First broadcast on BBC Radio 4's Today programme on Thursday 3 October 2013.

  • 03 Oct 2013
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