The way in which loans are packaged and sold in the UK are to come under the spotlight.
A new investigation into "irresponsible" loans made to consumers has been launched by the Office of Fair Trading (OFT).
The body is understood to be reacting to suggestions that consumers are being advanced credit by some firms without the provider adequately checking their ability to pay the loans back. The OFT also indicated today that the loans consultation is the first stage of a wider investigation into irresponsible lending among credit providers in the UK, which will eventually encompass other forms of lending such as mortgages and credit cards.
Lenders, brokers and intermediaries alike are also all anticipated to be probed by the OFT. Providers' marketing material, sales technique and use of credit scoring is to be investigated.
Launching the consultation, the OFT's director of consumer credit Ray Watson said: "Credit is an important part of everyday life so it is vitally important that consumers are safeguarded from irresponsible lending and that businesses have clarity about what this constitutes.
"The OFT looks forward to hearing from a wide range of businesses, consumers and representative bodies on these issues."
According to the body, changes to the Consumer Credit Act provided further impetus for the investigation. Under the new legal requirements, the OFT must identify responsible lending practices as a factor when it considers whether or not a particular provider should be granted an official consumer credit licence - which it must hold in order to trade to customers.
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