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Payday loan providers are split over an agenda to restrict the amount of rollovers of short-term, high-interest loans, MPs have actually heard.

The town watchdog, the Financial Conduct Authority (FCA), has proposed a restriction of two extensions of pay day loans if borrowers decided to go with never to repay.

Any office of Fair Trading (OFT) has recommended any particular one rollover had been a indication that a debtor was at trouble.

But loan providers told MPs that rollovers had been suitable in many cases.

Payday financing will be placed beneath the microscope by MPs amid a defence from a few of the industry’s biggest players.

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