UK financial sector watchdog has proposed measures to tackle potentially problematic credit card debt.
A study by the Financial Conduct Authority (FCA) found that firms do not have strong incentives to help customers out of persistent credit card debt.
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The watchdog is now considering how firms could help customers. Some of the measures include: timely prompts before promotional periods end; timely information to prompt consumers to take into account how much they are borrowing and avoid over limit charges; and giving consumers the ability to choose the payment due date.
FCA director of strategy and competition Christopher Woolard said: “Our final findings show that competition is working fairly well for most consumers, with firms competing strongly for custom, and the market offering a range of products to meet consumers’ needs.
“However, we remain concerned about persistent and potentially problematic credit card debt. We will continue to work closely with consumer groups and industry to deliver changes to help consumers gain more control over their finances.”
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By GlobalData
