As per reports, the Citizens Advice has claimed having seen some cases in past few months which included payday lending to people who were below 18 years of age. The individuals who has taken loans had mental health problems or were drunk when they had taken the loan.

The findings by the debt advice charity coincide with the time when the biggest payday lenders in Britain are asked to stop working if they are unable to prove that their practices are satisfactory to the Office of Fair Trading (OFT).

Citizens Advice suggested that the OFT must take an immediate and strict action after the trading watchdog handed 50 payday lenders a 12-week deadline in early March. The OFT has informed the lenders in waves about where to step up and the responses will be assessed before it takes decision on the next step.

The analysis by the Citizens Advice was based on the 780 cases that were reported to it between November 2012 and May 2013. The Citizens Advice Bureau (CAB) has asked the OFT to ban those lender with immediate effect who were causing harm to borrowers.

"The payday loan industry is out of control and is acting as a law unto itself. It has showed a complete disregard for its customers", said Gillian Guy, the Chief Executive of Citizens Advice.