The Financial Conduct Authority is looking for feedback on high cost credit including payday, rent-to-own and guarantor loans.
The regulator said it wanted to ascertain whether the cap is pushing excluded consumers to illegal money lenders instead.
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.”