Industry body the Finance and Leasing Association (FLA) and finance providers have been commenting on the switch to the new Financial Conduct Authority (FCA) led regulatory environment which started today after months of concern throughout the industry.

Stephen Sklaroff, director general of the FLA said: "The credit industry has worked very hard to meet what the regulator acknowledges to be a very challenging timetable.

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"Many of the 50,000 credit providers which now fall under the FCA’s remit will be unfamiliar with principles-based regulation and the complexities of a rulebook unveiled only four weeks ago. They will need time to adjust their processes.

"In the meantime, the FCA must work closely with the industry to maintain the supply of responsibly-provided credit to UK consumers and businesses."

Paragon Car Finance, a new entrant to the motor finance market, said that lenders could ease dealers transition into the new FCA regime by providing products that are easier to understand and can be adapted to different budgets.

Paragon also said lenders could build quality documentation and affordability tests into the initial online application process, satisfying two of the requirements of the new regime

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Julian Rance, head of Paragon Car Finance, said: "Paragon welcomes the new consumer credit rules and, in particular, the heightened focus on treating customers fairly. As a lender, it is important that we develop products that are easy to understand, retain visibility and control over the pricing of our products to the end customer and ensure robust checks are in place within our application systems to assess affordability."