CP17/43: Credit card market study: persistent debt and earlier intervention remedies - feedback to CP17/10 and further consultation

Closed consultation: CP17/10
03/04/2017
Open consultation: CP17/43
14/12/2017
14/12/2017
Consultation closes
25/01/2018
Policy Statement
Q1 2018

We are consulting on proposed new rules to help credit card customers in persistent debt.

CP17/43: Credit card market study (PDF)

This consultation paper follows CP17/10 (PDF), published in April 2017, which sought views on remedies to address persistent credit card debt and require credit card firms to use their data to identify customers at risk of financial difficulties.  CP17/10 also set out details of an industry voluntary agreement to give customers more control over credit limit increases. These remedies are part of our work to implement the findings of our credit card market study.

Our initial consultation showed widespread support for our proposed remedies in principle and for our aim of reducing the use of credit cards to service expensive longer-term borrowing, and we expect these remedies to lead to significant customer savings.

This consultation paper includes a revised analysis of the costs to businesses of the proposed remedies, to take into account additional data the FCA has received and some data that was omitted from previous calculations.  However, the expected benefits to consumers remain considerably higher than the revised cost of the remedies, and we remain of the view that our proposals are proportionate.

We also set out how we have changed our thinking on aspects of our persistent debt proposals in light of the feedback we received to CP17/10. 

We consider it is appropriate and in line with our statutory and public law consultation duties to seek further views before finalising our proposals. Stakeholders are asked to focus their responses on any new evidence or comments.

Who this applies to

  • firms that offer credit cards to consumers
  • consumers who hold credit cards, specifically those who carry a balance over a long period of time without making significant repayments, and customers at risk of financial difficulties

It will also be of interest to consumer representative organisations and firms who provide debt advice.

What you need to do

The consultation will run for six weeks. Please send us any new evidence or comments by 25 January 2018:

Online response form for CP17/43

You can also:

  • email [email protected] or
  • write to Nisha Darby, Financial Conduct Authority, 25 The North Colonnade, London E14 5HS

Next steps

We expect to publish a Policy Statement containing feedback to the responses we receive and new rules as early as possible in the New Year.