UK Cards' response to the final findings report from the FCA credit card market study
Commenting on the FCA's credit card market study findings report published today (Tuesday 26 July 2016) Richard Koch, Head of Policy at The UK Cards Association, said:
“It is positive that the FCA has reiterated its finding that credit cards work well for most customers. That said, 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. To this end, the industry has developed a comprehensive package of voluntary solutions, which the FCA agrees will deliver positive outcomes and can be introduced into the market quickly.
“There is a real industry commitment to going further and we are in discussion with the FCA in respect of other practical measures to help customers, so as to help develop other remedies expected later in the year. The industry is making a significant investment in helping the FCA to test a number of innovative new approaches with customers, using the learnings from academic research in other markets.
“Across the credit card market as a whole, while outstanding balances have increased by 7 per cent since 2012, interest earning balances have actually dropped by 6 per cent as more people pay off their balances and a greater number of 0% deals are available.
“We are pleased that the FCA has carried out more detailed analysis, looking at how individual credit card holders’ balances have changed over time, which has resulted in the refining of the group of customers they are most concerned about. The credit card industry will continue to engage constructively with the regulator in the coming months to ensure that effective and proportionate remedies are developed for these customers.”