The Financial Conduct Authority (FCA) is to review high-cost loan and credit companies including pawnbrokers and those offering household goods rentals and catalogue credit.
The City regulator is seeking evidence and feedback to help its work on high-cost credit, including a review of a price cap that was put on payday loans in 2015.
Experts say that the price cap has reduced issues with payday loans but warn that the problems may be shifts into other markets such as rent-to-buy.
The review is to look at the impact on customers taking out several high-cost loans to see whether regulation should be applied more widely.
It will also include doorstep lenders and firms offering logbook loans - where someone's car may be put up as security for a loan.
The FCA said credit cards, overdrafts and motor finance may also be high cost, depending on how these services are used.
Here's what you need to know about rent-to-buy credit agreements:
What are rent-to-buy loans?
Also known as Hire Purchase (HP), these loans allow consumers to rent household goods until they are paid in full.
Under the agreement, consumers pay the rental in instalments for an agreed period. The lender may be able to take back the goods if customers fall behind on payments.
What problems are associated with rent-to-buy credit agreements?
A third of those surveyed by the Citizens Advice Bureau (CAB) have missed one or more payments on their hire purchase agreements.
More than half (52%) of those who missed payments said they were treated unfairly and 45% said their treatment made it more difficult to repay their debts.
Over 90% of customers in arrears were not given a payment holiday.
What rights do rent-to-own customers have?
Customers can end a hire purchase agreement in writing and return the goods at any time.
They will be liable for all instalments due up to the time that the agreement was terminated.
If previous payments make up less than half of the total price of the goods, consumers will be obliged to pay the difference. If instalments have totaled more than half, a refund will not usually be available.
The original credit agreement should set out how much is to be paid if the agreement is ended.
Lenders sometimes say customers must pay the whole amount owed under the agreement before it can be terminated. This is incorrect.
When can a lender repossess the goods?
Lenders can repossess the goods if customers have failed to keep up with their payments.
Usually a court order will have to be obtained before repossession takes place. However, if less than a third has been paid back, a court order will not be necessary.
The lender will sell the goods to recoup the debt. Customers may be liable for the court costs and extra payments to make up the shortfall of the value of the item.
What to do if you are struggling to pay?
If you fall behind with payments, it may be better to end the agreement, in writing, to limit the amount you owe.
Some agreements include Payment Protection Insurance (PPI) which customers may be able to claim under if they have been off work due to illness.
PPI agreements need to be cancelled separately, also in writing.
For more advice, speak to a local Citizens Advice advisor.
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