Executives at PricewaterhouseCoopers (PwC) say money lenders including pay-day loan businesses are about to get a major shock when the Financial Conduct Authority (FCA) begins regulating them on 1 April.

The FCA will have more extensive powers than the Office of Fair Trading (OFT), which previously oversaw the industry. It will have influence over 50,000 firms with lending power amounting to £200 billion.

"The FCA will take a tough approach to consumer credit with stronger powers to clamp down on poor practice than the previous OFT regime," said Martin Wheatley, FCA chief executive.

But Craig Gentle, PwC’s consumer credit lead and financial services risk and regulation partner, said the changes would impact businesses that both apply for and dish out credit.

“While a lot of focus has been on payday lending, it is important to remember that this not only affects financial services providers, but all companies that provide credit facilities ranging from retail store cards to second hand car dealerships and dental practices,” he said.

Rules laid out by the FCA will place tougher restrictions on lenders and ensure that personal and business customers are treated fairly.