The Financial Conduct Authority (FCA) has called for evidence and feedback to aid it in its review of the payday loan price cap.

The call for input comes as part of a wider investigation into high-cost credit products to better understand whether they cause detriment and, if so, to which consumers.

Payday loans will be of particular interest to the FCA following a pledge to review the cap two years after its implantation in January 2015.

The FCA is now keen to see if there is evidence that the price cap has forced consumers to turn to illegal money lenders and assess whether the cap should be changed.

Andrew Bailey, chief executive of the FCA, said: “This is a significant moment for our approach to consumer credit regulation as we continue to ensure that this market works well for consumers.

“As an organisation, we have already taken many steps to address the risk of consumer harm by putting in place new rules for high-cost, short-term credit firms and taking action against non-compliance across all credit markets.

“We have come up to the point of reviewing the cap on payday lending, making now the right time to take a broader view of the issues around high-cost credit, including unarranged overdrafts, and to consider whether our requirements remain appropriate.”

Besides payday lending, the FCA will also look in more detail at unarranged overdraft fees and the impact that repeat and multiple borrowing has had on the market and consumers.

The FCA is asking for responses to its call for input by 15^th February 2017.

Since the FCA assumed regulation of consumer credit in April 2014, arrears rates have fallen by a quarter.

Meanwhile, 800,000 fewer people took out a payday loan between January 2014 to June 2015 than had done in January 2013 to June 2014.