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Several studies have shown that borrower-friendly laws lead to more restricted credit.
With rising unemployment, restricted credit and a stagnating housing market 2009 looks set to be a financially chilly year.
The FCA will now look at whether the cap has restricted credit, driving customers to loan sharks.
Public transport workers went for months without pay, and coal companies have restricted credit to state-owned power plants.
In response, the government has restricted credit to those businesses involved in illegal deforestation and initiated a multiagency police operation to crack down on illegal logging.
The business secretary said that the government would take a tougher stand against the UK's banks, as restricted credit to businesses is threatening to hamper the economic recovery.
Similar(44)
The Dodd-Frank act restricted credit-card penalties and overdraft fees, and proposed a cap on the amount banks can charge retailers for debit-card transactions.
Restricting credit shuts poor buyers out of the market.
Instead, they are trying to control inflation by raising interest rates and restricting credit.
That makes it all the more ominous that banks are expecting to restrict credit still further.
Credit card lenders are facing new rules that the industry claims will restrict credit just when consumers need it most.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com