Half the problem is the supply and demand problem, ie if you cut off the supply the demand goes to whatever is available, which could be illegal loan sharks. However these measures cannot be isolated, the government needs to address the supply side of the debate too, which includes funding for credit unions, shop-fronts for them and other ethical financial institutions, return the social fund, and obliging mainstream banks to meet lending quotas. These are big asks, I realise, but the problems offset by problem debt, which is only bolstered by payday lenders being able to charge what they can on loans, is a big problem as well.

It would certainly make payday loans less profitable (which is the point) and reduce the number of companies involved. This is probably a good thing unless it leads to the above.