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Focus on early intervention welcome, but FCA ‘could go further’ on persistent credit card debt

​Money Advice Trust comments on FCA’s update on proposals for remedies following its Credit Card Market study.

The Financial Conduct Authority has today (14 December 2017) published an update on its proposal for remedies following its credit card market study.  The update also includes a further consultation on proposed new rules to help credit card customers in persistent debt.

Joanna Elson OBE, chief executive of the Money Advice Trust, the charity that runs National Debtline, said:
“The FCA’s continued focus on early intervention is welcome, but the regulator could go further in ensuring these remedies are made as effective as possible in tackling persistent debt.
“Many credit card providers are already working hard to intervene early when signs of financial difficulty are identified, and the FCA is right to take steps to bring about further improvements.  However, 36 months remains too long for someone to be struggling under persistent credit card debt, and we will continue to make the case for the time periods the FCA has set out to be reduced.
“The FCA’s behavioural trials on increasing credit card repayment levels are a welcome step.  We hope that the door remains open to future increases in minimum payment levels, to ensure that debts are paid down in a more reasonable period.
“We look forward to discussing these proposals further and continuing to work with both the FCA and industry to ensure these measures are as effective as possible.”
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