Money Advice Trust responds to FCA’s credit card proposals.
The Financial Conduct Authority (FCA) has today published its consultation
on proposed remedies following its Credit Card Market Study. The proposed measures include earlier intervention from credit card companies in response to signs that customers are in financial difficulty, and measures to address the problem of ‘persistent debts’.
Joanna Elson OBE, chief executive of the Money Advice Trust, the charity that runs National Debtline, commented:
"The FCA is right to focus on earlier intervention.
"Credit card providers are already highly effective in intervening when customers show firm signs of financial difficulty, such as missing payments - including signposting to free debt advice.
"With millions only just about managing by paying the minimum payment on their cards each month, we need to see a similar approach applied at this much earlier stage of potential difficulty.
"The FCA's proposed measures should help with this, in conjunction with changes the industry is already making through new voluntary remedies.
"We look forward to working with the regulator and credit card providers to ensure these new measures are as robust and effective for consumers as possible."