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Credit card firms ignore persistent debt, says FCA
Credit card firms ignore persistent debt, says FCA
This is a duplicate of the Blog Entry made on: 29th July 2016 16:04
This is a duplicate of the Blog Entry made on: 29th July 2016 16:04
A total of 1.4 million people in the UK have only made the minimum repayments on their credit cards for three years in a row, the City regulator has said.
The profits made from these customers mean credit card firms do little to address persistent debt, the Financial Conduct Authority (FCA) said. Nearly half of them have borrowed more than 90% of their credit limit consistently for three years. Lenders have now agreed to help with warnings about growing debt. In its final report on the UK credit card market, the regulator said: "Credit cards are suited to short term borrowing and can be an expensive way to borrow large amounts over a long period. We are concerned about the volume of borrowing behaviour that does not fit this pattern. Source
The profits made from these customers mean credit card firms do little to address persistent debt, the Financial Conduct Authority (FCA) said. Nearly half of them have borrowed more than 90% of their credit limit consistently for three years. Lenders have now agreed to help with warnings about growing debt. In its final report on the UK credit card market, the regulator said: "Credit cards are suited to short term borrowing and can be an expensive way to borrow large amounts over a long period. We are concerned about the volume of borrowing behaviour that does not fit this pattern. Source