Loan companies targeting low income families with high interest loans are preying on the poor, a leading charity has warned.

Payday loans and door step loans are to be investigated with the Office of Fair Trading (OFT) launching a review into the 'high cost credit sector'.

Personal finance woes have already deepened in 2009, as over half of consumers have seen their disposable income decrease significantly this year.

Payday loans are charging individuals "obscene" levels of interest, claims a leading Conservative spokesperson.