The Japanese government has taken the first steps towards lowering the maximum interest rate consumer finance companies can charge customers, in a move that sent consumer finance stocks plunging and which is likely to face stiff opposition from lenders.

Standard & Poor's and Fitch, the credit ratings agencies, placed the credit ratings of the leading firms on review for downgrade following news of the proposal, which lays the groundwork for the introduction of stricter money lending laws as early as autumn.