Following the Financial Conduct Authority’s (FCA) announcement of the terms of reference for its credit card market study, Mike O’Connor, Chief Executive of StepChange Debt Charity said:
“We welcome today’s announcement by the FCA. Too many people are using credit as a safety net when all too often it is a trap which leads to problem debt. Credit card debt is one of the most common debt problems we see. Many people are struggling with multiple debts, high balances and interest rates.
“People will always need to borrow to cope with the up and downs of income and the costs they face, but we need to ensure that the credit market is operating in the best interests of consumers and with good levels of protection, especially for vulnerable people. None of us want to see a return to the bad old days of credit card lending prior to the financial crisis.”
Notes to editors:
1. The average StepChange Debt Charity clients holds 2.7 credit cards
2. The average total credit card debt of StepChange Debt Charity clients is £9,047