Response to the FCA credit card market study consultation paper
Commenting on the publication of the FCA’s credit card market study consultation paper issued today (Monday 3 April 2017) Richard Koch, Head of Policy at The UK Cards Association, said:
“We welcome the FCA’s considered proposals and support their view that the overall package is robust, and that the combined effect will address the concerns it has found. Identifying and responding to customers who may be facing persistent debt is an important and complex area, which requires careful consideration. The consultation paper sets out a package of measures and over the coming days we will explore these in more detail.
“While the FCA’s original report found that the credit card market works well for most people, we are not complacent and the industry remains committed to helping the minority of cardholders who do not use a credit card in a way which is in their best interest. The Association has a positive history of working collaboratively with the debt advice sector, and we will continue such engagement as part of this consultation.
“We are pleased the FCA has recognised the industry is well placed to offer solutions that can be practically implemented. The agreement on unsolicited credit limit increases provides customers with the ability to make an informed choice around how they prefer their limit to be managed, providing them with greater control, while ensuring that where a customer is at risk of unaffordable borrowing exclusion rules will apply.
“We will look closely at the proposals and engage constructively with the FCA to ensure the credit card market remains competitive, innovative and responsive to the needs of all its customers and protects them where there may be a potential risk of financial harm.”