Credit card companies will be obliged to provide more support to customers who are in persistent debt under new plans presented by the Citys financial watchdog.
The Financial Conduct Authority on Monday said that under a new proposal, firms will have to help customers who have paid more in interest and charges than they have repaid of their borrowing over an eighteen month perioddefined as being in persistent debt by providing a repayment plan.
Around 3.3 million people are in persistent debt, according to the FCA, and over half of those have been for two consecutive periods of eighteen months.
Credit cards can be a very effective product for consumers, but a significant minority of customers experience real diffic…
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