FCA publishes its final policy statement on new rules for the credit card market

Following a comprehensive study of the credit card market, the FCA has published its final policy statement on new rules for the credit card market.

The new rules aim to provide more protection for credit card customers in persistent debt or at the risk of financial difficulty. Firms will be required to take series of escalating steps to help customers who are making low repayments over a long period.

Where the customer has been in persistent debt over 18 months; firms will be required to contact customers, prompting them to change their repayment and informing them that their card may ultimately be suspended if they do not change their repayment pattern.

Once a customer has been in persistent debt for 36 months, their provider will have to offer them a way to repay their balance in a reasonable period. If they are unable to repay, the firm must show the customer forbearance. This may include reducing, waiving or cancelling any interest, fees or charges.

The new rules will come it force on 1 March 2018, and firms will have until 1 September 2018 to comply.