The Financial Conduct Authority has today issued a reminder to firms about its expectations of how they communicate with people and treat them if they have persistent debt on their credit cards at the 36-month point where further intervention is triggered. Between one and two million people will shortly be receiving these letters.
StepChange head of policy Peter Tutton commented: “It is helpful to see the FCA reminding firms of their responsibilities under the new rules.
“The FCA is unequivocal that firms should not cancel people’s cards wholesale. We particularly welcome the regulator telling firms to include in their letters a reminder that forbearance is available if people cannot afford what is suggested, and that they should signpost to independent advice, especially for those receiving letters from more than one card provider.
“Charities like StepChange can help. We have been working with creditors to ensure they know the services we can provide for customers receiving these letters. Our new online advice hub for persistent debt will ensure that everyone receiving these letters has somewhere to turn for independent information and guidance on what to do next.”