Payday lenders are being subject to an “in-depth thematic review” by the Financial Conduct Authority (FCA).

The FCA will become the regulator for consumer credit on 1 April and it said in a statement that short-term loans would be its first priority.

It will investigate how loans are offered, debts collected and borrowers are managed. Payday loans companies also offer services to small businesses.

"There will be no place in an FCA-regulated consumer credit market for payday lenders that only care about making a fast buck," said FCA chief executive Martin Wheatley.

On top of the review, the FCA said it w0ould visit the biggest payday lenders, assess financial promotions consider a cap on credit costs and encourage the industry to create a real-time data-sharing system.