The organisation said it assisted consumers with 5,554 payday loan issues across England and Wales in the first three months of this year, a year-on-year fall of 45 per cent.

Since coming under the regulation of the Financial Conduct Authority (FCA) in April 2014, the payday loans industry has been subject to stringent regulation, including a rule stating that lenders cannot charge more in fees and interest than the total amount borrowed.

Gillian Guy, Citizens Advice chief executive, said the fall in reported payday loan problems was a welcome development, but it remained vital to keep a “watchful eye” on the industry.

“The drop in the number of problems reported to us about payday loans is good news for consumers and demonstrates the impact a strong stance against irresponsible lending can have on people’s lives,” Guy said.

The organisation also called for FCA regulation of other high-cost credit products, such as logbook loans – issues have been raised over the industry’s high interest rates, fees and charges, and allegations of aggressive debt collection practices made.  Citizens Advice will publish a study of the logbook lending industry later this year, and make recommendations to the FCA.

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