MPs have called on the Financial Conduct Authority to drive the worst payday lenders out of business.

The Office of Fair Trading last year found that 50 of the largest lenders including market leader Wonga breached regulations.

Conservative MP Nadhim Zahawi said: “A good regulator needs to have blood on its sword, and I hope that the FCA will use its enforcement powers to drive the most egregious players out of the market.”

The Authority will take over responsibility for the payday market in two months.

Conservative MP Charlie Elphicke said: “Most of us in the House want to defeat the payday lending industry.”

The rates of interest charged and aggressive advertising of short-term loans have attracted criticism.

Adrian Bailey MP, chairman of the Business, Innovation and Skills committee, which investigated the market, warned that payday lending adverts were often seen by children.

MPs urged the regulator to prevent consumers from taking loans from several lenders at the same time by legislating for the reporting of real-time information, and also limiting the total capital people can borrow