Regulator warns lenders against suspending credit cards for all those in persistent debt - MSE News

Former_MSE_Naomi

The financial regulator has written to credit card firms telling them to review how they treat customers who are in 'persistent debt', amid fears some lenders are planning a 'blanket' suspension of cards...

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'Regulator warns lenders against suspending credit cards for all those in persistent debt'

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born_again

So just what are the card providers supposed to do?

Let these people carry on spending, knowing for well that they (card providers) are breaching the regs..

So if they don't stop the spending. Then are they going to have to start refunding interest? While it will help the runaway spender. They are going to fleece that for all its worth.

It's not exactly fair on people who pay in full each moth or the card provider.

It seems that the regulator does not know its backside from it's elbow. As well as exactly how the industry works...

Consumerist

born_again wrote: »

. . .It's not exactly fair on people who pay in full each moth or the card provider. . ..

Except that it's those who are paying interest who are funding the free loans to those of us which pay-off the balance each month.

I can see annual fees on credit cards for all of us is likely to be one of the solutions to reduce interest on transactions for those in persistent debt. Not a happy outcome for most of us.