FCA tells credit card firms to review their approach to persistent debt customers

Willing2Learn

The Financial Conduct Authority (FCA) has written to credit card firms telling them to review their approach to borrowers who are stuck in persistent debt, where they are paying more in interest, fees and charges than they are paying of their balance.

The FCA require firms to help people who have been caught in a cycle of persistent debt for three years, by proposing and agreeing plans with customers to resolve the situation. Ahead of firms issuing letters setting out proposals to customers who have been in persistent debt for three years, and to make sure the firms’ approaches to the rules are working in the best interest of consumers, the FCA is outlining a number of areas firms need to review and ensure their approach is in line with expectations.

Source: FCA

born_again

Seems that the FCA are quite happy for firms to lose money, while the runaway spenders reap the benefits for their lack financial planning.

Next they will be saying they have to refund all interest on what these people have spent and are not paying back..

Willing2Learn

born_again wrote: »

...

Next they will be saying they have to refund all interest on what these people have spent and are not paying back..

Well, the FCA have said a "...firm must offer forbearance, potentially including reducing, waiving or cancelling any interest, fees or charges."

born_again

:rotfl:Bring on another fee for holding a credit card.....

The FCA seem hell bent on doing their best to end free banking in the UK. Which will effect these people with persistent debt even more.

We might as well all spend up to our limits, pay min payments. In a couple of years the FCA will be telling card providers they will have to wipe the debt off :rotfl:

Retired_Mortgage_Adviser

In principle, I'm not against the underlying intentions in the new guidance/regulation.

But as a dedicated and long term stoozer, I'm worried this might well spell the end of stoozing or at least make it more cumbersome. I've been in "persistent debt" for almost 2 decades now! :P

Dandytf

Hope I Haven't been using savings too soon with todays FCA info.
Though I'll continue until April and make 3rd agreed payment to 3rd card affected by persistent debt rules.
Let's hope latest FCA reminder actually removes suspension action though maybe card providers will re name their own action and 0 limits anyway.