High street banks accused of leaving poor families 'at the mercy' of legal loan sharks Citizens Advice slams mainstream lenders for not helping families Payday loans charge interest of up to 4,000% Controversial industry faces unlimited fines for breaking new rules Millions turned to new loan companies after credit from banks dried up High street banks have been accused of abandoning Britain's poor and leaving them at "the mercy of predatory payday lenders." The country's big name banks are urged by the Citizen's Advice to "step up to the plate" to offer more help to people to pay bills and feed their families without falling into a "spiral of debt. The outspoken criticism of mainstream lenders comes after the UK's 50 biggest payday loan companies were warned by trade watchdogs they had until the end of next month to improve their behaviour or they will be shut down. Rich pickings: Citizen's Advice said struggling families had been forced to take out high interest loans from payday lenders on the high street and online because banks refused to help them To date complaints about the devastating impact of short-term lending have largely focused on the payday industry where interest rates can top 4,000 per cent a year. But Gillian Guy, chief executive of Citizens Advice, today turned her fire on high street banks, blaming them for giving struggling families no option but to take loans from firms like Wonga, Quick Quid and PaydayUK. She warned that banks risk becoming "the dinosaurs of financial services" outpaced by new lenders who are quick to meet the demand for immediate credit. "Banks have turned their backs on some of the poorest people by shutting them out of mainstream banking, leaving them at the mercy of predatory payday lenders," Mrs Guy said. WONGA Typical APR 4214% Signed four-year deal to sponsor Newcastle United CASH LADY Typical APR 2670% Hired ex-bankrupt reality star Kerry Katona to front ad campaign PAYDAY UK Typical APR 2610% Bought by US giant Dollar Financial in 2011 for a reported $195million PAYDAY EXPRESS Typical APR 2671% Linked to 350 Money Shops, owned by American conglomerate Dollar Financial QUICK QUID Typical APR 1734% Spent an estimated £3.2 million, advertising during programmes like Friends, Desperate Scousewives and Hollyoaks They can step up to the plate by offering responsible short term loans that can be spread across a person's bank account so they can pay an urgent bill and still feed their family without being sent into a spiral of debt. Citizens Advice says it has seen a ten-fold increase in payday loans over the last four years as people use them to make up shortfalls in income or cope with unexpected bills. Last month the Office of Fair Trading said it had uncovered 'widespread irresponsible lending' in the industry and reported the 'deep-rooted problems' to the Competition Commission. The 50 biggest lenders, which account for 90 per cent of the market, were are accused of failing to comply with the standards expected. The OfT investigation found that while the firms advertise short-term loans to help people for a few days until they are next paid, up to half of their income comes from long-term loans when people get into financial trouble. They were given 12 weeks to improve their conduct or risk losing their license to operate in the £2billion industry. But the government was criticised for refusing to cap the level of interest rates that the firms can charge. They will face unlimited fines for breaking new rules under a government clampdown of the controversial industry. But the firms - dubbed legal loan sharks - will escape a statutory cap of their rates amid claims that it would only drive desperate families into the arms of overseas lenders. Millions of families have turned to new loan companies after credit from banks dried up in the wake of the recession. But critics say some firms run by "cowboys" are exploiting vulnerable consumers with their extortionate interest rates. The OFT It said that, despite payday loans being described as one-off, short-term loans costing an average of £25 per £100 for 30 days, up to half of payday lenders' revenue comes from loans which last longer and cost more because they are rolled over or refinanced. Other countries do restrict payday lenders" interest rates. Australia has imposed a 48 per cent annual interest rate cap on its industry while 35 American states have limits on fees and interest rates. Payday lenders in Canada can charge interest at up to 60 per cent a year. Some campaigners say a cap on interest rates alone would be a blunt instrument and make it so unprofitable that some customers would turn to illegal loan sharks. Instead, they have called for a cap on the total cost of a loan, so that people who are forced to roll over their debt into a longer-term loan do not face crippling costs.