In this Consultation Paper (CP) the authors set out proposals for new rules and guidance to address persistent credit card debt and to require firms to assess whether customers are at risk of developing financial difficulties, and intervene appropriately. They also set out the way forward in relation to control over credit limit increases. These interventions form part of the overall package of remedies announced in July 2016 in the credit card market study (CCMS) final findings report.
The overall objective of the package as a whole is to reduce the number of customers with problem credit card debt. In particular, the authors are setting out proposed new rules about the treatment of customers whose debt persists over 18 to 36 months.
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