But an official study in 2010 said payday loans provided a legitimate, useful, service that helped cover a gap in the market.

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World Acceptance has benefitted from a resurgence of consumer interest in payday loans.

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This includes a limit on the rollover of payday loans, and breathing space for customers who are struggling to repay.

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Debt management company, MoneyPlus Group, reporting a 10-fold increase in clients with payday loans between 2008 and 2012.

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It revealed that increased fuel bills meant that a significant number of people were turning to moneylenders and payday loans to cover their payments.

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The bottom line: payday lenders deliver convenience at a high price, even when borrowers might qualify for cheaper loans elsewhere.

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Debt charity StepChange welcomed the government's move, saying it had seen a "dramatic" rise in the number of people in Scotland seeking help with payday loans.

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