Attracting consumers to payday loans has prompted widespread debate.
Adverts tend to feature witheringly attractive people with a big smile, announcing how easy it is to borrow these relatively small sums. Some offer loyalty rates or pay those who recommend friends and relatives.
Mr Lamidey says that some providers on the fringes might push the boundaries, but the mainstream payday lenders are in for the long haul and so carry out credit checks and act responsibly.
One major chain is charging £9.99 for a £90.01 loan that is all repaid within 30 days. The APR on this deal is typically 260.2%.
The OFT report says that some consumers do not understand how an APR works, with many people finding it more useful to be told how much they have to repay in total rather than the APR.
The review also explains that quick access to money was the primary reason why people choose particular credit offers, even though they know that this is an expensive way to borrow money.
In fact, up to a third of users of certain high-cost credit products say they will continue to use them even if interest rates are raised so their monthly repayments are a third higher.
"I am concerned that so many people are relying on these forms of high-cost credit," says Consumer Minister Kevin Brennan.
"That is why we have provided almost £100m to support community-based lenders such as credit unions and we have also improved the advice and support available to people in debt through the free national debt helpline."
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