Wonga

Workers are increasingly turning to payday loans firms because their wages run out before the end of the month, creating a "debt disease" which is spreading rapidly across the country, a new report has warned.

Payday lender Wonga has been ordered to stop aggressive debt collection tactics or face a £50,000 fine. In some cases it has accused debt-ridden customers of being fraudsters for paying late.

The Government will consider a cap on prices charged by high-cost lenders but stopped short of supporting a motion calling for immediate regulation.