The Office of Fair Trading has recently reviewed the high-cost credit sector.
And Capital One is moving to expand significantly in this debt-driven consumer credit sector.
Payday lenders need different treatment from the established home credit sector.
Of all the lenders the Consumer Credit Counselling Service sees, the home credit sector has frequently proved to be the most forbearing.
Absa said the deal would help strengthen its position in South Africa's retail credit sector, as well as allow the company to build a closer relationship with Edcon.
This fear is so pervasive that it has brought the credit sector to a virtual shutdown, even to borrowers with good credit.
Linda Woodall, acting director of supervision - retail and authorisations at the FCA said: "Although standards in the consumer credit sector are improving, it is disappointing that examples of poor practice in the payday market keep surfacing.
The FCA takes over regulation of the consumer credit sector on Tuesday, and it also outlined plans for a review of how struggling borrowers are treated by the industry, and how loans are advertised.
Wonga has already sent its submission to the Competition Commission and said its work "accords with our view that the short-term credit sector needs better, rather than more, regulation".
Managing Director at Piper Jaffray, Robert Napoli, was optimistic on the credit sector in general and said he particularly liked AmEx stock.
