WORCESTER’S MP grilled payday lenders as the controversial firms came under the microscope at a select committee meeting yesterday.

Robin Walker was among those to challenge lenders at a Business Select Committee meeting involving lenders, consumer groups, regulators and a minster.

Mr Walker said there were still significant issues about the affordability of loans and the need to limit loans to those able to pay them back.

He said one of the biggest problems was payday lenders not sharing information so they were aware of who was already in debt.

He said: “It is no use waiting for the industry to deliver on this.

"I asked a lot of questions about affordability and making sure that people weren’t taking out lots of different payday loans on top of each other.

“I think everyone on the committee would agree there is more to be done to tighten up the system and it’s right there is a lot of concern.”

Mr Walker challenged lenders over the figure they put out that only three per cent of their loans could not be repaid, pointing out that this was still 40,000 people whose credit rating had been “destroyed” – and that this was not a record to be proud of.

The Worcester MP said it was important for people to consider the alternatives, including credit unions and credit cards rather than resorting to the loans. 

And Mr Walker also praised Martin Lewis of Moneysavingexpert.com for his “strong evidence” on payday loan companies “grooming” young people.

Mr Lewis also called for a ban on payday lenders advertising on children’s television.

Mr Lewis said on Twitter: “A payday lender charges in a month what a credit card charges in a year.”