The UK's 50 biggest payday loans firms are facing the prospect of being put out of business unless they implement swift changes to their practices within 12 weeks.
The ultimatum has been issued by the Office of Fair Trading following a wide-ranging investigation of the sector.
The trading watchdog says its uncovered evidence of "widespread irresponsible lending".
Aidan Vaughan from the Association of Christian Financial Advisors told Premier's Marcus Jones on the News Hour why the reforms are needed: