The UK's top financial regulator has accused the credit card industry of encouraging excessive debts.
Martin Wheatley, the chief executive of the Financial Conduct Authority (FCA), said many people were struggling to manage their credit card bills. "Why are card issuers providing the means, in some cases, for the most indebted consumers to escalate their way into further debt?" he said. The industry responded by saying it was committed to responsible lending. Mr Wheatley's comments came as the FCA announced further details of its inquiry into the credit card market. The competition review will focus on whether the market is working effectively for consumers, and how providers treat vulnerable borrowers. It will start at the end of 2014.
'At risk'
The credit card industry responded by saying it was committed both to responsible lending and transparency. It pointed out that credit card debt had fallen, while spending on cards had risen. "That said, we are not complacent about the small number of customers who find that changed circumstances, such as illness or redundancy, mean they need more support with managing their debts," said Richard Koch, the head of policy at the UK Cards Association.....Read more here