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In addition to watching the mortgage-backed security markets, we should pay close attention to the credit card and auto loan sectors.
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However, the private student loan sector does not play by the same rules.
Martin Wheatley, incoming chief executive of the FCA, said there was clearly growing concern about "abusive practices" in the payday loan sector.
The short-term loan sector, which is worth more than £2bn a year, was referred to the commission in 2013 following an investigation by the Office of Fair Trading.
The responsibility for regulation of consumer credit – including the payday loan sector – will move from the OFT and come under the jurisdiction of the new regulator Financial Conduct Authority (FCA) from 2014.
Just days after Google proudly announced it had banned the morally dubious payday loan sector from its advertising platforms, its parent company has been revealed to be a repeat investor in a payday loan lender.
But a number of experts who deal with complaints about the payday loan sector have told the Guardian that the affordability tests carried out by many of these other lenders are as bad or worse than Wonga's.
Wonga is the biggest online lender in the payday loan sector with about a 30-40% market share, but there are around 90 other lenders including Dollar Financial UK (the parent company of brands that include The Money Shop, Payday Express and Payday UK), CashEuroNet, QuickQuid, Peachy and Sunny.
The Loan sector provides contract loans, customer credit loans for insurance and house equity loans.
He wants to forge a joint venture with the mortgage firm, perhaps outsourcing some loan-servicing functions to Countrywide and also tapping its considerable expertise in the home loan sector.
Such refinancing is already commonplace with mortgages and cars, but has not been easily available in the student loan sector.
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