Loan rules 'will protect vulnerable'

The Financial Conduct Authority (FCA) has announced plans for tougher controls on payday lenders.

The measures include more stringent affordability checks and a limit on the number of times borrowers can extend their loans.

The chief executive of the FCA, Martin Wheatley, told the Today programme's Justin Webb that the proposals were aimed at protecting vulnerable people.

He explained that securing a loan would be a lengthier and more complex process, which would mean those who may not be able to meet repayment deadlines will be deterred from taking out loans.

"It should mean you're not pushing people into a spiral of debt," he said.

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