She said: "Behind the glamorous marketing lie extortionate interest rates and charges and the misery of multiple rollover loans".
A second investigation into the payday loans sector is also under way by the Financial Conduct Authority which is examining rollover loans and some of the exorbitant interest rates charged.
The high-cost credit industry is also facing a crackdown on the number of times they can rollover loans and may be forced to introduce time-lags on loans, so borrowers don't end up choosing a lender on the basis of how quickly it can get at the cash.
Mr Freeman agreed that there were cases in which it was better for a customer to rollover a loan and pay the extra interest.
"We are keen to look at the automatic rollover of loans, the use of continuous payment authorities, and the upfront credit checks," he said.
But Lamidey's argument is that 94% of CFA customers report satisfaction, a verdict resting on greater transparency, prompt repayment rates and only – on average – two rollovers per loan; ie the loan rolled over for another month.
His remarks, at a news conference, responded to criticism of government approval of rollovers of loans for several large companies and fresh loans for Hyundai Engineering and Construction.
A restriction to only one rollover per payday loan.
In the international debt crisis that began in 1982, IMF country adjustment programmes went hand-in-hand with "bailing in" creditor banks through "voluntary" coordinated loan rollovers.
We know already, from the collapse in the property market and the rising loan rollovers at banks, that many of the investments made over the past few years are not paying back.
The regulator is particularly keen to look at the automatic "rollover" of overdue loans, which are supposedly designed to be short-term products; the use of so-called continuous payment authorities, which allow lenders to keep trying to collect missed repayments from a borrower's debit card; and problems with upfront credit checks.
