Pay Day Loans, in case you have never come across them, are taken up by people who are unlikely to be awarded credit elsewhere. With incredibly high interest rates - pay-day loans can go from 4,500% with Wonga to 2,500% with Uncle Buck, or 1,200% with Payday UK or 1,700% with Kwik Cash.
No wonder almost half of those who took out a Pay Day Loan reported that their financial situation worsened because of the loan. Interestingly, when I googled Wonga to find out a bit about the company, I discovered that it has £90m of venture capital behind it. So someone is expecting to make shitloads of money from this company.
Please read her post, then write to your MP and the Lords about this ill-planned cut.