With respect Al I think you're view is a bit simplistic. Yes, the APR rate is outrageous, but these are not intended as long-term loans. They're short term to be paid back in a matter of weeks. The charges are high in proportion to the amount borrowed, but probably affordable.

If you were to borrow a tenner off a mate until payday, you probably wouldn't pay him interest as such, but you might buy him a pint as a thank-you - that's £2-£3 or more against a principal of £10. What's the difference?

These are high-risk commercial businesses. Their admin costs are high relative to the amount borrowed and there's a fairly high risk of default. Their charges are high, but it's a very competitive market which will help to keep them down. If the government were to cap what they're allowed to charge, then if that makes them unprofitable they'll simply stop providing loans.

What are the alternatives? These are people who the mainstream banks won't touch with a barge-pole. But we can't rant about the banks losing billions through high-risk lending and then complain when they won't give a loan to someone with a poor credit score. The government? That's you and me. We're probably already paying their benefits, why should we subsidise their borrowing? That leaves credit unions, but there aren't many of these and new ones take time to build up a fund, or loan sharks who charge even more exorbitant rates of interest and are a lot more ruthless about collecting them.

It's not an ideal situation, and I share your unease. However these services are necessary for thousands of people, and are perhaps the least bad option for most of them.