Regulator's 'tough' code of conduct on payday lenders

Last month 50 payday loans companies were given 12 weeks to clean up their act or face action from the Office of Fair Trading.

The companies say they are making changes and have set up a regulator to make sure registered payday lenders do abide by a new code of conduct.

The regulator is called the Short-term Lending Compliance Board. Chairman Seymour Fortescue told BBC Radio 5 live's Wake Up to Money its "tough" code of conduct will "not defend the industry".