Payday loan companies have been condemned by Hyndburn Council for ‘trapping millions of people in spirals of debt’.

The council also endorsed a charter calling on regulator the Financial Conduct Authority to introduce tougher regulation on payday lenders, in a town hall motion.

During a full council debate on the issue, councillors expressed their anger at the ‘huge interest rates’ of some lenders.

Coun Joan Smith said: “It’s disgusting what they charge, these interest rates push people into a spiral of debt.”

Coun Bernard Dawson said he wanted to raise awareness of credit unions as a viable alternative. He added: “People are having to use these payday lenders for food and electricity, it’s terrible.”

The motion has been sent to Martin Wheatley, chief executive of the Financial Conduct Authority and to Hyndburn MP Graham Jones to take to Parliament.