FCA action delivers £80 million savings in fees for credit card customers
Regulatory Updates | 07/03/19
In recent years, the Financial Conduct Authority (FCA) has focused on reducing the risk of harm that flows from customers being in debt that they cannot afford to repay. Some key areas of work have included:
• Targeted supervisory work to mitigate the risks from poor culture and practice in firms and to ensure that firms only lend to customers who can afford it.
• Implementation of rules and guidance for credit card firms to ensure that they address the situation of customers that have been trapped in persistent credit card debt they cannot afford to repay.
The FCA has also looked at fees and charges across a number of consumer credit sectors. The data and analysis from this piece of work raised concerns about the application of credit card fees to customers whose management of their account indicated that they might be in financial difficulty.