THE proposal to restrict the number of pay day loan shops opening on Scotland's High Streets is the next critical step in regulating a sector of the economy that we should all feel uncomfortable about - a sector predicated on the financial vulnerability of our poorest citizens.

Although some involved in the lending sector might view intervention in the retail industry as the hand of the nanny state, Scotland’s high streets are increasingly characterised by empty units, charity shops, bookies’ and, of course, the ubiquitous pay day loan store.

The ongoing presence of shops offering loans with eye-watering levels of representative APR heralds, to this paper at least, the return to the bad old days of the pawnbroker - when it was commonplace for poverty stricken people to pawn their wedding rings to make ends meet.

Indeed many of the High Street pay day loan shops also offer pawnbroking services and cheque cashing services that in some instances see businesses taking almost 10 per cent in commission.

The claim that pay day loan shops are now "flooding" the streets of communities where there is "deep-rooted poverty and social deprivation" should ring alarm bells with all decent people.

As such, this newspaper welcomes the commitment from the Scottish Government to set out changes to planning legislation linked to pay day lending firms by the end of the year.

We also hope the Scottish government will listen to those encouraging ministers to give councils more powers to restrict the opening of such shops. Although perfectly legal, they are a blight on our society.

However, the Sunday Herald would also like to see moves to test the limits of Holyrood powers to see what action can be taken to curb high rates of interest charged by companies which provide frankly extortionate credit for essential household goods.

Ministers should seek to utilise Holyrood's full powers to act in this area to protect financially vulnerable Scots. It is the duty of our political leaders to do so - and do so quickly.