Persistent Debt new Credit Card Rules

Dandytf

Is there any format yet to understand from which % or cost CC providers will be using.
It would be helpful to provide this type of info to exiting card holders to allow some budget adjusting to be made in time

SnowTiger

Dandytf wrote: »

Is there any format yet to understand from which % or cost CC providers will be using.
It would be helpful to provide this type of info to exiting card holders to allow some budget adjusting to be made in time

There's a handy graphical guide here, showing how customers in persistent debt are identified.

https://www.fca.org.uk/media/ps18-4-helping-customers-persistent-debt-our-new-rules

Savvy customers who take advantage of 0% transfer offers shouldn't be affected by the new rules.

A4445

SnowTiger wrote: »

There's a handy graphical guide here, showing how customers in persistent debt are identified.

https://www.fca.org.uk/media/ps18-4-helping-customers-persistent-debt-our-new-rules

Savvy customers who take advantage of 0% transfer offers shouldn't be affected by the new rules.

I wonder if credit card companies have to reduce interest to help customers. Will these be reported to Credit Reference Agency’s as an arrangement. It could ruin people’s credit report.

Anthorn

A4445 wrote: »

I wonder if credit card companies have to reduce interest to help customers. Will these be reported to Credit Reference Agency’s as an arrangement. It could ruin people’s credit report.

Doubtful because it's the lender acting in accordance with the Persistent Debt rules and not the card holder defaulting. Anyway it will be 36 months until lenders are forced to reduce or eliminate interest and charges.

There could however be additional fields added to credit reports.

Probably the worst that will happen is that credit cards will be suspended and that's not a bad thing.

worriedDan

A4445 wrote: »

I wonder if credit card companies have to reduce interest to help customers. Will these be reported to Credit Reference Agency’s as an arrangement. It could ruin people’s credit report.

I think that there would be uproar if this was the case.

I expect that they won't be able to do this as the CC companies will still need to act in accordance with what is specified in the T&C's of the credit agreement that the customer signed up.

Perhaps new credit agreements will include a clause regarding these new rules.

I would be pretty annoyed if my credit file was tainted If I had always managed my account in line with the T&C's that I signed up for

jonesMUFCforever

worriedDan wrote: »

I think that there would be uproar if this was the case.

I expect that they won't be able to do this as the CC companies will still need to act in accordance with what is specified in the T&C's of the credit agreement that the customer signed up.

Perhaps new credit agreements will include a clause regarding these new rules.

I would be pretty annoyed if my credit file was tainted If I had always managed my account in line with the T&C's that I signed up for

...But T&C 's can be amended - by giving you the appropriate notice.

worriedDan

jonesMUFCforever wrote: »

...But T&C 's can be amended - by giving you the appropriate notice.

I guess that the customer would be able to opt out though and close the account??

Dandytf

Thanks mser's

I'm already@18 mth 'please consider raising your payments' examples at least with Cap1
I hope to raise that in advance of the 27 mth reminder.

Small balances cleared 1st for me, not Tesco @5xx which I had mentioned recently-that's after Cap1

My only slight concern is if CC providers start enforcing their choice of re payment amounts though the new rules doesn't seem to point to this happening.

Anthorn

Dandytf wrote: »

My only slight concern is if CC providers start enforcing their choice of re payment amounts though the new rules doesn't seem to point to this happening.

Aqua already has done this. There has been a change to their Ts&Cs and the account summary has new fields, "Payment Requested" "Made Up of Contractual minimum payment ..." while the minimum payment field has gone.

Dandytf

Anthorn wrote: »

Aqua already has done this. There has been a change to their Ts&Cs and the account summary has new fields, "Payment Requested" "Made Up of Contractual minimum payment ..." while the minimum payment field has gone.

Thanks- I've only missed that as in my experience Aqua haven't yet chosen to add numbers in addition to minimum payment, I guess there's time for this to happen.

Maybe small increase in DD's I have made helps avoid any additional Aqua requests.