Consumers may find it more difficult to access loans and other forms of credit as a result of new responsible lending rules which have been proposed by the government.
This is according to the Finance and Leasing Association (FLA), which said that the plans contradict the government`s call for lenders to help with economic recovery.
Under the proposals, which were recently announced by the Department for Business, loan providers will have to check people`s creditworthiness before providing them with money.
In addition, consumers will have a 14-day period after entering credit agreements in which to withdraw from them.
Lenders will also be under a duty to provide adequate explanations of the credit they are offering.
Responding to the development, the FLA said: "At a time when we need to stimulate the economy, these proposals will restrict access to credit and could force consumers into the unregulated sector where credit is available more quickly and without any checks."
