CALLS for payday loan companies’ interest rates to be limited have been made by an MP.

Graham Jones spoke out as figures showed more people had applied for high interest loans in the past six months than in the whole of 2012.

The Haslingden and Hyndburn MP said the ‘legal loan sharks’ were preying on vulnerable people.

He said: “Payday lenders are causing serious debt problems for so many people.

Their massive interest rates, rip-off charges, irresponsible lending and misleading advertising of payday lenders are pushing those who can least afford it into spiralling debt. Wednesday's decision by the Office of Fair Trading to refer the payday loans market to the Competition Commission for ‘widespread irresponsible lending’ just shows why we need regulation.

“Financial help charity StepChange said the amounts owed by its clients increased only fractionally in the first six months of 2013, rising by £8 to £1,665, but it was alarmed by the continued growth in the number of people with more than five payday loans.”