The Consumer Finance Association, which represents payday lenders, says all short-term lenders should not be tarred with the same brush.
The CFA was responding to suggestions that all lenders may be required to compensate customers. The calls came after online payday lender Wonga was accused of irresponsible lending and was forced to write off more than £300,000 of its worst loans.
Russell Hamblin-Boone, CFA chief executive, said: “It would be wrong to assume that all lenders’ affordability assessments have fallen short of the mark.
“Every firm operates differently and has distinct business models. CFA members are subject to the same laws as all credit providers and there is no suggestion that they have acted illegally.
“The OFT/FCA rules on affordability are open to interpretation but we are not aware that any CFA members are facing challenges about previous lending decisions.”
The statement follows news that around 99 per cent of Britain's payday loan companies would face oblivion next year under strict new credit guidelines set by the Financial Conduct Authority.